I think you guys are forgetting that the whole concept of streaming console image to a portable device was already on the PS3-PSP via remoteplay. It's possible to play games on the PSP streamed directly from your PS3, as well as have specific interation between the platforms. The problem is, this function was not supported very much by developers, but the technology and the potential is all there, as well as a few examples.
I think it's the same situation as the Kinect vs. Eyetoy thing. Sony created the technology of gaming with no controllers, but neither Sony itself nor 3rd party developers supported it that much, so it was a flop. Then Microsoft unvelied Kinect, and is giving full support to it. People totally forgot about the Eyetoy.
One of the main problems with Sony is that when they do create something inovative, it's usually some idea that is a little bit too much ahead of its time. The concept behind Eyetoy is what now powers the Kinect, but the technology at the time couldn't give it a lot of precision, so it was not very succesful at first. Sony thought "hey, this doesn't sell, the idea suck". The problem was not the idea, it was the technology available at the time to power the idea. If they realized the problem was not the idea, they could have continued to invest in technology and eventually have something Kinect-like way before Microsoft. But they just decided to scrap it because it didn't get the interest of people nor support of devs.
Remote Play between PS3-PSP suffered the same fate. Hopefully things will go better between PS3 and Vita, now that Vita has a lot of new interaction possibilities, with the cameras, touch screen etc. But the idea of transmitting the game from the console to a portable device and use it as the controller is still the same, the difference now is technology (and hopefully developer support).