Flash memory cards? In 2012?!?!?
Downloadable games can't be re-sold, and while game developers and publishers would love to destroy the used game market, a lot of people buy games used, or buy new games knowing they can sell them back to the store. Sony is playing it safe here.
I have to say I wasn't thinking about the used physical game market infrastructure, but keeping those parties happy doesn't seem to me as important as staying relevant.
The only reason people need to be able to resell games on a PSP is because of the upfront cost - which, lets face it, includes not just Sony's profit but for the entire distribution chain. Re-pricing games for download-only-acceptability, even if we were to take Apple's model, would make at least a notable portion of the 'need to resell' issues go away.
The mooted method of the NGP is a half-and-half approach appears to me to be a foot-shooting sop for the b&m retailers which relies on Sony for business, yet often plays little real part in making Sony visible/relevant in the marketplace - which I think only lets Apple pull further away in front for both casual and also increasingly more 'serious' games.