HOW-TO: Get videos and DVDs onto your Sony PlayStation Portable (PSP) for free

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Well you would probably compress the DVD a bit first, maybe drop the resolution as well. but yeah compact flash > memory stick
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Yes I know how small they are, smaller size is good, but prevents the use of microdrives (at the moment). Compact flash has much larger storage sizes, 4 gig plus. and are much cheaper. Its simply Sony wanting to push their own proprietary products as usual (sony MD, blueray, etc.). Prices will drop, probably, but they will never be as dirt cheap as compact flash.