Alright, so, a few points:
The Vita is obviously not meant for you. You do not see the appeal of a device that delivers console quality games with the controls to do them justice on a portable device. That's fine; you're not the only person who feels that way. Regardless, it is clear that the Vita was not made for you or the market that shares your opinion.
I, and others on here, find that as devices are doing more and more, it's nice to have a device that does one thing exceptionally well. My old phone was a better phone than my nice new smartphone. Of course, with that functionality, I've personally settled with what I have in my smartphone. Now, so many people own smartphones or tablets that you have to wonder: why does the Vita NEED to do everything? We already own devices that do everything. The problem is, while those devices also do gaming, it doesn't do it exceptionally well; and for someone who's favorite hobby is gaming, that will not cut it.
As for not understanding the market, nobody is going to WANT the Vita as an internet-browsing machine, or a video player, or an apps machine. There are better devices out there for that, that are smaller and more more portable. Do you think that if they added a bunch of apps that people will suddenly start buying it in droves? Of course not. People want a tablet or a smartphone for that. This has a few apps that are just a couple "essentials", but, as a whole, the Vita serves one purpose, and for a lot of us, it serves that purpose very well.
You don't care for physical controls, you don't care for its size, you think the idea that it's a gaming device first and foremost is rubbish, you think it would be embarrassing to be seen with it in public, you find PSM underwhelming and think it will fail (of course, despite it being "out" for only a week and the SDK not even being available yet), etc. Remind us why you got the device? You could have used one of your multipurpose devices to do a little research on it first, so you would have known that it isn't a "do everything" device.
For us, who may indeed be a dwindling market, this machine is about our last hope for a dedicated portable game system, so while we find faults with it, we live with that, deliver our feedback, and enjoy the awesome things about it (of which there are many).