Am I correct in assuming that the thing is just gonna show up with A/V cables and no component or HDMI or fucking VGA or anything else? Am I also correct in assuming that the controller that comes with it is wireless? I need to pre-invest in some more rechargeable batteries if this is the case. :P
Yes, and yes. However, rechargeable batteries will do you no good since the battery's built in, but it'll come with a USB cord for charging.
My top recommendation would be Demon's Souls, easily. I thought the difficulty claims were blown somewhat out of proportion (though I DID make liberal use of my guide and online resources), and it's a type of dark fantasy I don't see out of games often, certainly not those from Japan. Beyond that, I really enjoyed inFamous but opinion's somewhat mixed there.