"If people could buy a DVD and use the PS3 to watch it on their TV as well as use it to copy the DVD to the PSP, people would see a greater value in both the PSP and the PS3."
That's makes too much sense. That's why SONY will never go for it. If they wanted to, they could have pulled that off with PS2 + PSP.
The phone has 256MB of RAM and a 1GHz processor, which do the job reasonably well, though the Anna interface will likely leave something to be desired for many smartphone users.
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"If people could buy a DVD and use the PS3 to watch it on their TV as well as use it to copy the DVD to the PSP, people would see a greater value in both the PSP and the PS3."
That's makes too much sense. That's why SONY will never go for it. If they wanted to, they could have pulled that off with PS2 + PSP.