Yep.
Big ass screen for movies (just make sure you get a screen protector when buying one!)
Plays Mp3 files.
Plays Games.
Light weight and looks nice.
So, yeah, it's a portable media device.
Yeah just pick up a Zune for 99$ and be done with it
But the PSP isn't made for watching Movies or listening Music. It's made for game. Watching movies and listening to music is a nice little extra.