All in all the PSP is still alive here in Canada, however its section is pretty small. I'm sure once 3DS launches that it will begin being phased out here as well. Sony is desperatly trying to keep the PSP alive with tons of ads on TV however so they don't want it to go down.I bet world wide the PSP will be dead by spring 2012 with possibly the exception of Japan.
Will Sony announce PSP2 at TGS? No they won't. I am 98% sure that Sony will not announce a PSP2 at TGS. Infact I think the next PSP will likely come in the form of a phone much like the I-Phone. Sony will release a new gaming phone possibly using the PlayStation brand. That new phone could be at TGS this year but no conventional sequal to the PSP as a gaming device.
I think software sales on PSP were too poor for Sony to launch another conventional portable gaming device. In order to boost sales I think a phone will be nescessary.
My specs bet, the PSPhone will have graphics abit superior to PSP. It will use UMD's likely being cross compatable with the PSP. Instead of having number buttons it will use a touch screen similiar to the I-Phone. It will probubly retain a form of Joy stick and D-Pad with the traditional PlayStation buttons. However Sony will market the device as a phone probubly giving them away free or nearly free with a 3-year contract. Sony will use its phone capabilities to boost its hardware sales then using a smaller 8-gig internal hard drive it will be able to play cheap indy games like the I-Phone for about 1$-5$ each while consumers also can purchase full priced UMD's for 39.99$.
Thats my prediction!