Jason,
I don't feel upset really so much that Phi Sigma Phi was formed, they have a right to feel that way if they choose. And there really isn't anything that can be done to prevent them from any veiled hostility on their website, either.
One thing that was kind of interesting though is that the naming convention for new PSP colonies is the same as the original Phi Sigma Epsilon chapters. This is to seem as if the merger had never taken place, and I think kind of unfair to the majority of Phi Sigma Epsilon chapters who supported the merger. Anyway, off of my soapbox for now and tossed in my two cents.
Dan
P.S. I've checked out Penn State's PSK website and it does look like they have a strong chapter! Good to stand out among the 50 some fraternities there!