Well shouldnt the DS have been smaller in the first place? I do believe the DS Lite had nothing new for it. Unless you call a brighter screen an "upgrade". Even though it was huge, they couldnt fit in GB/GBC playability? Now i have to carry a DS and SP.
So yes, video out is a nice added feature. Added ram is also nice. Its nothing amazing cause its still PSP, not PSP2. At least its still compatible with old PSP games.