Should of released a PS3P.

Should have*

Thank you, i feel so much happier.

Truth^

Vita as a portable PS2 with slightly upgraded graphics would have been phenominal. Portable remasters of older games has been Nintendo's handheld bread and butter for years. Too bad Sony failed to copy such a great strategy. 

"Just like Nintendo, they will not have to split their resources anymoe, all devices will play the same games. "

Okay...so, Sony hasn't been splitting resources like Nintendo did with 3DS. Nintendo is still heavily supporting 3DS with their best 1st party teams and 3rd party collaborations. Sony has simply forgotten the Vita and simply don't support it in any way in terms of their best development teams. They've been putting all their effort into the PS4. The only time they really tried was with Golden Abyss.

But another Sony handheld that plays its current games isn't out of the question. It's a matter of when it'll become affordable and if the tech will allow for a comfortable experience. We've seen the competition copy Nintendo numerous times so it really wouldn't surprise me. 

Well, the Vita had a lot of slightly upgraded PS2 games:

• Persona 4 Golden
• Odin Sphere: Leifthrasir
• Final Fantasy X
• Final Fantasy X-2
• Metal Gear Solid 2
• Metal Gear Solid 3
• God of War 1
• God of War 2
• Sly 1
• Sly 2
• Sly 3
• Jak 1
• Jak 2
• Jak 3
• Ratchet & Clank 1
• Ratchet & Clank 2
• Ratchet & Clank 3

A ton of good PS1 + PSP games were/are also availabe for the Vita.

could really be, but not before sony can offer it for the right price

I agree with this.

1) The Vita has a pretty solid following. Good Japan support and already plays ps1/ps2/ps3/ps4 games via remote play. I think Sony will figure out a way to convert the process of Playstation Now where you can download ps2/ ps3 games onto your vita for mobile play.

2) Sony will not let the handheld market all to Nintendo. No way. Sony just has to make the commitment on their next handheld to release the mega buster games that gamers need on a portable machine. IE- GTA, Gran Turismo, COD, Metal Gear Solid, Battlefield, Bloodborne, Skyrim, God Of War, etc.

Vita 2 is all but a reality in the next few years.

A PSV2 could also receive lower tier versions of PS4/5 games, much like the PSV does.

Full Vita Backwards Compatibility (PS1 Classics, PSP, PSminis, Vita)
"Sony" Exclusives
True Exclusives (New Entries from Freedom Wars, Patapon, Soul Sacrifice)
PS2 Classic Support
3rd Party Multiplatform games from Switch

Some very specific predictions there. Don't like digital only at all, but a digital only PS portable is better than nothing at all.  I'd buy the device you're describing. Or some variation of it. Now, we wait.