Are you saying that the term Pixel/Fragment Shader has not been available before nVIDIA and the GeForce 3 ?
I disagree, but we can leave it at that...
About the GS and bump-mapping: I am sure it does embossed like a charm
Pixel Shader in your opinion might mean DirectX 8.0 or OpenGL 1.3, for Sony they might mean DOT3 blending support or DOT3 blending support and dependent texture reads and I do not see a problem with that.
Nintendo thanks to a low profit margin platform for 3rd parties, wrong medium used and now a platform with lack of non gaming features lack of online multiplayer action lost market share to sony consoles which filled the areas in which Nintendo lacked and then added quite a lot more.
Why shouldn't it happen again ?
MP3, MPEG4 playback vs nothing
WiFi 802.11 ( multiplayer action with other PSP devices and probable connection to a WiFi access point for online gaming ), USB ( to PlayStation 2 and PlayStation 3 ) vs link cable connectivity.
1.8 GB optical UMD vs ROM carts
Of course, I am not telling the complete story ( I am not even talking about the GBA 2 and other things ), but neither are you