We can go back and forth on this lol I don't agree with your games aspect, PSVR 2 gets games almost weekly if not monthly, more than 100 games available. It's a good strategy to get Quest ports and a few exclusives or timed exclusives.I would much rather see them invest in proper handhelds like PS Vita used to be. The VR space is still a niche market, although competiton is definitely there. The games are the weakest point for PSVR 2 (lack thereof, especially exclusive titles).
PS Vita was my handheld love so I won't disagree there.
I would want a PSVR mode for most games and I'd be happy. It's, like they did when they reinvigorated the move controllers and added support for many games later on.