There is such a double-edged sword for the Vita.
Developers say they can't make games until the units sale, customers say they can't buy the Vita until there are more games.
Then you look at how difficult it is to convince a developer to create a game for the Vita, sell fewer copies than a console version, and then also sell the games for $40 instead of $60. Whereas if they created a console game they could sell it for $60 and sell a lot more copies. But then at the same time, it is hard to convince gamers to buy the system because there simply are not a lot of games.
Games are expensive as it is. Not many people want to spend hundreds on a console, and then hundreds on a handheld console. Not to mention the fact that that is another system to buy games on. I think the majority of us are satisfied with playing games on our 30+' TV's than have the ability to play them on a tiny screen in comparison. I do like having a system I can take anywhere - but like most when I am out and about it is generally because I am doing something and taking a Vita out of my pocket isn't realistic at that time.
I think the system has some good games that I enjoyed. Not everyone feels that way, and it is a lot easier to justify buying a tablet, or using your phone, and spending $5 or less on games that are still perfectly fine to kill time on the go. It is much harder to justify spending $40 on games that are watered down versions of their console counterparts.
This does lead me to a point though. Remote play should help sales some. However, again, it will be hard for many to justify spending $200 on a handheld that can play your PS4 games anywhere in your house or somewhere else where there is a good Internet connection. I could find much worse things to spend my money on, but still. I'm not sure how many people will go for that. As more games come out, and remote play is demonstrated more and more, sales should increase. By how much remains to be seen. I don't expect it to make a giant comeback. I also don't expect Sony to meet or exceed their sales expectations by the end of it's cycle. However, I do expect it to do fairly well when all is said and done and no where near end up as bad as it seems right now.