Ehhh. I'm not going to rebuy my PSP catalog. I knew this was coming (and in fact if Vita was DD only I wouldn't buy it), and didn't like it. Right now I buy UMDs, rip them, and transfer them to my Go. That'll probably be how it remains.
Seriously, something must be done about the physical vs. digital divide. Retail versions of games should come with a voucher for a hefty discount on the digital version, and the download version should be significantly cheaper in the first place to discourage people from abusing the reselling of physical copies after nabbing the voucher code. The same thing can be said for games with PS3/Vita cross-compatibility--I think the "premium" console version should have some code for a discount on the digital Vita version if both games aren't significantly different from one another.
I'm freaking out because I want to own things physically and the option to legally rip digital copies of them, but it's easier and cheaper to just go with a hassle-free digital version right from the start because physical versions of games eventually drop in price.
It sucks because I was playing both PSP Lumines games all day yesterday (well, mostly the original), and it'd be so nice having the new one digitally. Better games, the ones that are more important to me, the ones that I'd want to play all the time, need to be on my system 24/7.
But...I'm going retail. If I want the luxury of having something readily accessible, I'll just get the digital version later on as a supplement that may or may not exist in the future due to the iffy nature of things on PSN. It's not like a Super Nintendo you have in storage somewhere that can be dusted off whenever. Some games get taken down, and that service might not even exist years from now.
fake edit: Imbarkus already sort of made this point.