Both are pretty bad.
I think the argument being made here is that 16GB storage in PSP is decent since games were much smaller back then, but 1TB for an all-digital console with games that frequently require patches and updates and has Game Pass is pretty paltry.
Now if someone buys this with the sole intention of playing exclusives, 1TB is probably fine.
Otherwise, no, all digital gaming devices are not great ideas. To the PSP Go’s credit though, it’s a portable device. A portable DVD player with all digital access is practical where you can have a DVD player and DVD collection at home.
Switch gets it right in my opinion. The cartridges are tiny and easy to move around with, so going all digital makes less sense for that. I don’t see any reason for an all digital home console. Options are good, sure, but I just don’t see the point unless you’re really constrained on space.
Something for everyone, I guess…