Well, my PSP is almost dead to me, but only due to a major hardware failure (The friggin UMD drive has it's motor broken!). Now, if I want to play any liscensed games legally, I have to buy the game then download the ISO image off the internet! Do you know how redundant that is to me?! It ****ing sucks.
Alas, twas all but mere complaining. No, the PSP isn't dead and will not be dead even when Sony stops supporting it. It is a technological marvel that deserves it's place in history. It has a lot of good games out for it, but it's versitilaty is what keeps it going. Also, you have to count the homebrew scene. They're not all "hackers" as some would call them. They are only trying to find out just how much the PSP can do. Did you know that one of these "hackers" wrote a program that allows you to watch Youtube videos on the PSP? I wouldn't consider that malicious activity, would you?