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The games really aren't there yet, however those that are out, are beautiful. You would NEVER expect such amazing graphics from a handheld device. The movies are a waste of money, but some games like Tony Hawk Underground: Remix, and Ridge Racer are very good games. GTA, and GT are destined to be released for it. They are also releasing a very nice looking FPS next month called Coded Arms.
Yes, I would argue it is worth buying one. The movies released for it arent the greatest, but if you have a memory stick then you can just take one of your own dvd's and compress it down far enough to where it will fit on the psp. Thats what all my friends do. Its a whole community. Check out www.pspcrazy.com
Since there is an exploit for something I haven't read and don't care, since I don't have one, you can also play copied games and shit...
Personally I don't see the point of the thing (at least for myself) since I don't have to travel al lot by plane/bus/train, and when its a car I'm driving myself...