Hmmm, its like a portable PS2 basically. It comes in 4 versions: fat (no longer in retail), slim (idk if its still in retail), bright (a slim with more vibrant colors), and soon to be released: PSPGo!
Its controls are much like the PS2, except there are no R2/L2, but the games are still really great, including the CRAP load of games coming out later this year and next year.
Besides being a portable gaming system, its an all round media hub...thing..... It can view pictures, make those pics the wallpaper for your psp, play music (with quite a few nice features to it as well), play videos (pretty damn well).. There are also frequent updates so the PSP wont get all outdated and whatnot.
About the internet, its ok, its kind of clumsy...but its cool once you get used to it. the internet load times are a bit slow, and it cannot hold much memory per page (so you cant truly enjoy a site filled with flash and pics). You can stream videos and download pics, music, videos, gamesaves, etc from the internet to the PSP (but it doesnt support Megaupload/rapidshare and stuff)
The graphics are VERY nice (search up Gran Turismo PSP), graphics depend on the game, the high end games look very impressive (God of War looked about as good as its console brothers)
I dont think you can youtube, pretty sure about not being able to facebook either, but Myspace works i believe. You cannot take photos, for there isnt a camera (but you can buy the camera for the PSP).
The online communnity is ok, theres no real PSN with friends and stuff so you cant keep track of it, i know i sucks. But yeah, the online community is decent, since the PSP isnt too popular....yet....(all those new games should change that problem). Everytime i tried to find a match online, i had no problem so meh
I would definately recommend this....its just so beautiful.....Ohh and you can hack it to o.0.......yeah
HACKING IS A WHOLE NEW DEAL DOOD
but dont do anything illegal on it :p but dood theres really too much to go over about hacking.....you have NO IDEA