Because it's what makes hardware so cheap.
The Vita has hardware that is probably comparable to the iPad4 (or maybe5), yet it's being sold at $250, not $500.
Unless you want to say goodbye to the model where hardware sales are subsidized by software sales, and buy gaming devices with huge markups. Because that's what we're going to get.
Well, to be honest, what we're going to get is Sony exiting the dedicated handheld market, leaving only nintendo, which won't use that model, but lower powered hardware it can sell for a profit at a low price.
Enjoy the future. But hey, you can play all the old console games you want on them, who needs new games?