Definitely get both of you can, but start with the PSP. I've never regretted buying my PSP. The software is just so polished, and games seem to have a cinematic quality. I've got loads of games for mine- I tend to wait for the release hype to die down then buy them pre-owned. If I'd bought just a PSP and Metal gear Acid I'd have been occupied for months. Everybody's Golf, Liberty City Stories (it's GTA3 on a handheld fer gawd's sake, and it's lost nothing!) and many others mean that it's a top platform. To say there's no decent games is simply not true. There are some fantastic games. Try Outrun 2006- basically it's an arcade quality game. On a handheld.
I did buy my two kids (Victoria, 4 and Mark, 7) DS Lites for Christmas though, and after having a play (as you do!) I decided to splash out on one for myself. It's worth it, there are some decent games, although I feel a lot of them are very contrived, in that they build the game around the touchscreen instead of just building a decent game. I will say one thing, the DS' 3D capabilites are shockingly basic. It can just about handle Mario64, and that's a game from a decade ago. If you want to be regularly wowed by production values, then the DS is not your bag. New Super Mario and Yoshi's Island are great, but in pretty much all the non-3d games, there's not really an awful lot going on that would tax a Gameboy Advance. I'm still in two minds about the console overall to be honest.
The all important sitting-on-the-loo statistic sees me playing the PSP more (and in most cases, until legs go dead, which is a sign of decent games). For playing-on-the-train it's probably more the DS Lite. And that's probably because of the size and pocketabillity more than anything else.
On the subject of the DS, Vic is only 4 and can't read properly yet, are there any games for the DS that don't require you to read? I've been through about 10 now, and taken them all back to Game because there's important information that's text based. She's managed to work out Nintendogs OK, which is keeping her occupied, but I'd like to get her some more games. If there aren't any games for non-readers, Nintendo are missing out on a pretty big demographic in my opinion!