I really don't think the Dingoo should be compared to a PSP.
I think it's a decent replacement in purchase over a PSP. I mean, you have to hack the PSP, first off. And there's a chance of bricking it. Yes, there's a fix, but for someone not that tech-savvy, the Dingoo is a GREAT portable way to play old games. Also, the TV out is a huge plus (have you seen those ripoff Atari/Nes systems that plug into a TV w/ 100 one-off games? Those sell like hot-cakes! And hot-cakes fucking sell.
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If you have a PSP, run with it! If you don't, and you know how to safely hack a system, get a PSP!
Otherwise, out of the box, this thing is ready to go for old-gaming goodness.
Apples and oranges, people.