The 5.7x28mm round from the FN 5.7 has been proven (albeit in limited cases) to do VERY well in LE/Civilian shootings. The lack penetration is a problem in some people's minds, yes, but there are loads for the 5.7 that will give you better penetration. Elite Ammo loads some GOOD stuff that outpenetrates the factory stuff by a small margin. The average 5.7 round will go through 9-11" of gelatin. Not enough in the opinions of many, but in the real world it seems to get the job done.
The main advantage of the 5.7 is the fast follow-up shot and the 20 round magazine.
The 40gr VMAX rounds perform about identical to a .223 VMAX round impacting 350 yards downrange. Expect about 11" of penetration with a lot of fragmentation.
When using SS195 rounds (Hollowpoint LF rounds) the projectile behaves like an FMJ .223, yawing very early in the wound track and tumbling, usually stopping 9-11" in.
The 5.7 has also tested to do well against windshields. INferior to bonded handgun rounds like the 357SIG ect. in my opinion, but it HAS proven that it will achieve penetration and decent penetration into objects behind the windshield.
All of this hype over "armor piercing" is just that. Hype. It is no more prone to go through vests than any other low-powered varmint type round. The .223/5.56 will VASTLY outperform it on a vest.
As to using handloads for self-defence. I have NEVER seen a SINGLE case where that made a difference. If anyone knows of said landmark case, post up a reference. I simply wouldn't use handloads because lets face it, Ranger Talon's and whatnot are hand inspected and have a LOT of money/time going through QC to make sure they go "bang" when you pull the trigger. That makes me feel warm and fuzzy.
-NOW-
The 5.7/PS90 is NOT! a replacement for the .223. It is meant to replace the 9mm SMG type weapon, and that it does well imho. As far as the 5.7 pistol, the "slow and heavy" fans will always be arguing against it, and the "light and fast" fans love it. In the real world, contrary to much rumor, it has performed well.