this looks like a pretty good start for the next contender for the “iPhone killer” stakes.  The rumor is that the PSP2 or PSP 4000 will be out before Christmas. from pocket gamer:

the PSP 2 will be a compact device with a large touchscreen.

However, where Sony’s machine has the edge is when the touchscreen is slid open as it reveals familiar buttons, D-pads and – praise the Lord of Handhelds – dual analogue controls.

This new format should allow for both existing hardcore console titles as well as simpler touchscreen games along the lines of those currently available in the App Store. And like the App Store, (and in the absence of UMD), the games will all be available for digital download via the PlayStation Store.

source