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Remember the Kindle is Amazon's second pass at e-books. Years before they sold DRM PDF e-books, decided they were too much bother, and shut down the business, leaving the existing customers high and dry. There is a lot of defunct small publishers, leaving DRM'ed books in their wake that can no longer be transferred to a new reading device.
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Yup, this is a constantly repeated story here on this forum. The ONE person I know who actually got caught up in the Amazon switch from PDF did n't bother to contact Amazon but simply stripped Amazon's now defunct DRM scheme. Of course, stripping DRM in an emergency situation is both morally and legally proper. For further discussion on DRM, please read The Other Thread.
As to PSPs, another way to look at it is that SOME techie guys wanted a replaceable battery option for PSPs. MOST folks didn't want to screw around with a replaceable battery , so the manufacturers catered to the majority. IOW, the majority made the "wrong decision" according to techies. What's the most popular ereader today? You guessed it-the one with non replaceable battery and the most closed format-the Amazon Kindle.
If the booksellers make the cloud subscription model the simplest, most convenient and most cost effective model, the consumers will probably make the "wrong" decision again.