Is psp better than ipod touch for movies?

That's a good question. Let's break it down into pieces.

Price
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UMDs (PSP) are about $10-$15, but since they're physical, you can buy them used for about $3. (BETTER)


iTunes: $10. Period.


Compatibility
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UMDs are for PSPs. That's it.


iTunes movies work on your computer, iTouch, iPod, and iPhone. (BETTER)




Simplicity:
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UMDs have to be watched one at a time on physical cartridges, meaning you have to bring one for every movie you want to bring.


With the iTouch, you only have to bring one thing: your iTouch. (BETTER)


Screen Size
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PSP: 4.3 in wide (BETTER)


iTouch: 3.5 in wide


In my personal opinion, iTouches are better, but ultimately, you decide.