I dont know what site you are looking at, but I am finding the HDs for about 180, plus s+h. Plus, the PSP plays great games, has a much larger screen, and a Wireless LAN card built in. All it needs is more memory and it is a fantastic carry-around tech device. A little big, but thats quite alright by me...JFK
I just checked on them, if you can find a Memory Stick for less than 289 go for it. Either way versatility or not the price compared to other devices even with your price is still out of whack.