I dunno - i think we have to disagree. The Vita isn't the first games console to have a weak launch and it won't be the last - i've seen it too many times to fall for the "doom" line especially as i was previous the Troll In Residence when the PS3 looked like it was dying a death
The Vita definitely has it's problems - and as you mention the price barrier is a big one. In a worst case -doom- scenario Sony would have to slash the price, which won't do wonders all on it's own but it would help. I guess my take is that if they do get to the point that it looks like certain doom then the price slash tactic would almost certainly have an all round good effect (on consumers, publishers...not so much for sony)
Again - it really would take a huge number of 3rd parties to decide to walk away from the Vita and then we come back to the original beef. Without context that original quote can be translated a couple of ways due to Japanese and plurality. In the end i went with context (no person can speak for ALL publishers) and the use of geemu and a few other factors. IF that happens though, then the Vita would be in trouble - but i think it's way too early for a wholesale walk away from the Vita.