Perhaps I'm on glue here, but the part he reffers to the article on PCmag.com about "there's no way to capture video content from TV and get it on the PSP directly…Practically speaking, for video you'll be limited to what comes out on UMD". Sure there are, it's called a USB cable.
Unless that is using only a TiVo or PVR of some type with no USB, or form to get it onto removable media. Getting video onto a memory stick isn't rocket science.
Also, it sounds like he is expecting far to much right out of the box, since when was any console 'all that' when it came out? Reaching it's maximum potential takes some time.
Not that I am trying to sound like some kinda fanboy, since I feel the UMD thing is 100% true, and memory sticks just ain't cheap. Of course, as always, moving parts break. But it just doesn't seem to me all that bad in reality.
Other then that, it is a solid review for sure.