Yeah, it looks like this thing could even surpass Tegra3's expected performance.
Still, it's pretty enormous and there's no indication on pricing yet. If it were $500, I can't see it doing too well.
Yes, given the hardware (bleeding edge CPU/GPU, 3G, wifi, GPS, 5'' OLED, plenty of sensors, dual-cameras) I won't expect this to come cheap. PSP launched at around $249 if I remember correctly but this looks like it will be priced much higher. It will a lot cheaper than smartphones because while phones are sold at a healthy profit, in case of the PSP it might be sold at a loss. But $350+ seems almost certain?