The only wishful thinking here is you thinking Sony will quit handheld gaming.
1) They are not going to let Nintendo have a monopoly of the market.
Putting aside the subject of non-dedicated mobile devices for the moment: Whether you like it or not, the current-gen handheld war, such as it is, is over, and Sony has lost quite decisively. Unless Soul Sacrifice/Tearaway/PS4 remote play/Unannounced First-Party Game Here miraculously turn out to be system-sellers on a large scale, or unless Sony takes third-party execs' families hostage to force them to make Vita exclusives, there's no visible path to get Vita to "commercially relevant competitor" status.
2) They are not losing a shit ton of money with the Vita.
Relative to what they lost on PS3? No doubt true, but Vita doesn't have to be a massive money pit in order for continued support to become an increasingly unwise decision. Given the absence of realistic prospects for a significant turnaround (and to be clear, a Gamecube-level LTD would qualify as such at this point), the opportunity cost to Sony of attempting to keep the platform afloat is only going to grow over time.
3) If a console manufacturer left the market because of bad sales then Nintendo would have left after Gamecube. However they had GBA just like Sony has its home consoles to make up for it.
If GC had performed as badly as Vita, it might indeed have been Nintendo's last home console. If PS3 had, I have no doubt that it would have led Sony to exit the gaming hardware business entirely, considering the magnitude of the losses they were already taking.
i honestly don't think Sony are as concerned as some people are in this thread. if they were losing money or were under any pressure we would have seen desperation moves from them. the first price cut came after a year and a half and only in japan. you don't see anyone from Sony going oh shit we need to do something or say sales are terrible like nintendo did when they did their shocking price drop less than 6 months after launching.
There's a grain of truth here, in that the JP price cut is the first time that Sony has responded to Vita's historically abysmal sales with anything resembling genuine urgency.
But the notion that Sony isn't concerned about a major product selling less than half of what they projected for the fiscal year, including sub-PSP 2011 holiday sales in the West despite a major marketing/bundling push and terrible third-party support worldwide, is completely absurd. Instead, nearly every aspect of Sony's handling of Vita to date indicates that the lack of "desperation moves" is for a very simple reason: they just don't have the latitude (edit: or will) to execute them. They couldn't cut the price in even one region until the weakened yen made it viable; they won't divert first-party development away from PS3/PS4 (and even then, the kid-dominated demographics of the remaining Western dedicated handheld market make it far from certain that Naughty Dog et al. could even produce a system-selling handheld title); and they don't have the leverage over third parties to secure significant exclusives (or seemingly any support at all, in the case of Capcom and most Western third parties).
Going through that Sony financial report thing:
I find it potentially telling that "offering game software on mobile devices, including smartphones and tablets" is characterized as part of their solution to Vita's sales:
Sony Q3 FY2012 results release said:
In the digital imaging and the game businesses, which are positioned as core areas of the electronics businesses along with the mobile businesses, the shrinking market for compact digital cameras, due to the expansion of the smartphone market, and the slow penetration of the PlayStation®Vita portable entertainment platform are recognized as particularly important issues. Sony is working to improve profitability through reinforcement of its high value added products that are differentiated by the use of highly competitive image sensors developed by Sony. In the game business, Sony is working to expand sales and operating income through the introduction of an attractive software lineup and through offering game software on mobile devices, including smartphones and tablets.