I bought one a couple weeks ago and am in love with the thing. Though it's a bit shy in the 'new' department, I love having one little unit that can play hundreds and hundreds of old classics... being able to fit some 300 genesis, PC engine, NES, SMS, game gear and gameboy/gameboy color + some old classic PC games in the form of Doom and and some Lucasarts classic games on one tiny 128MB SMC.
Another card filled with a movie and/or some MP3's and that's one hell of a lot of entertainment from one tiny little unit. The initial cost is high for the unit, SMC and some batteries but after that it's almost all free and well worth the cost to buy in.
I too worried that the scene would be dyning by now... I mean the GP is hardly a new system anymore, but there are still a lot of people quite in love with the thing who gladly toil away their free hours of the day to produce great software for the thing for us all to enjoy... I think it will remain that way for quite a while.