WISE FWOM YOU GWAVE
I actually am super excited about the prospect of carrying my entire portable games library along with me inside the system, and of switching games without rebooting. Sign me the fuck up. But yeah, download times?
I love the online software store, but if I got one of these, I would never, ever download a game to the thing via the device. I would ALWAYS download to my PC instead and transfer them over, like I do with music. I'm sorry, but even 50mb takes way, way too long for any portable device to transfer (processor speed), and that's over wi-fi.
One of the big reasons the App Store is so hot on iPhone right now, I think, is that the games are cheap (like $1.99 median price) and small (gotta be 10MB or less average). You can pull pretty much any game down, even big-name, pretty-3D-graphics ones, in about 60 seconds over wi-fi and not much longer over 3G. (If you're using EDGE only, the official company line is still "kill yourself".)
But this is a portable game system without a phone, so less functionality, with the same capacity as the 3GS, but all the games are $39.99 an 300MB or better. So, it fits into my life pretty nicely, but that's because I have extra always-on PCs and a nice fat broadband connection, and I'm always at home when I play my portable systems. That doesn't sound like anyone else I know.
It's like a system designed exclusively for technophiles and game reviewers.
Add to this the fact that there is literally not one single game, ever, in the entire lifespan of the PSP that I would buy (or haven't bought in a better form already). Not one.