I can help you fix it.

wow, didn't expect that many people to dislike the iPod

Meh, I'm still considering my options for a multimedia device.

About fixing my PSP...
1. No warranty and I had already opened it anyway
2. I completely messed up the repair job. Both clips for the LCD and the backlight connector broke off and some transistors got knocked loosed.
3. The buttons and joystick problem seemed way too much of a hassle to attempt to fix it

I'm just going to break down my PSP and sell the parts.

the original ipods - the ones without the battery issue were great, but only for music.
ipods these days anyway are only good for music - anything else is a bolt on. add that to the fact that ipod quality has went downhill and i have to agree ipod is no longer the best player. so that makes me an ipod hater too. :)
umm your going to break it down for parts but it sounds like you broke the main part :/ those clips and caps are on the psp mainboard so its a rightoff (possibly). i think only the screen, drive and wlan card would be the only parts worth saving.
i don't know of any other decent media devices that can do as much as a psp can so it really boils down to...do you need it? i think you should repair it, either that or wait until psp2 which may not be that long away.

I could also sell the faceplate, buttons, UMD tray cover, power switch, etc from the PSP as well.

I'll probably just buy a basic mp3 player in the interim.

one of those new small Zens is nice, like a shuffle but with a screen and without the 'ipod' and more
i also checked out iriver lately tey make nice stuff too
and mobiblu cube is only 2x2x2cm or something with a big oled screen and lots of features

yea.. the Creative Zen, or Iriver x20 ≥3

well good luck to you whatever you decide to do.