I guess I lack imagination. All I want is an easier to understand music player and better, more detailed profiles for my friends list. Aside from that, I'm happy.

Maybe I do have a little imagination: How about giving me a different theme every time I boot up the XMB screen? I have dozens of pics/themes that I will never see otherwise.

Faster profile loading, and more detailed profiles.
Cross-in-game voice chat.
Optimization of the XMB (faster, less RAM usage)

And many more.

EDIT: And PS2 emulation of course!

better communication features, skype addition would be ace.

quicker access times for friends lists trophies etc

improved browser

cross game invites and party chat with game launching

maybe ingame voice chat.

but i don't care about the rest

i got my ps2 still working,

GReader compatible RSS-reader ( maybe integration with life@playstation )
Options to organize friends ( grouping, tagging )
Organize messages ( by type )
Organize bookmarks ( tagging )
Integrated Internet Radio would be great.

-Easy jumping into a friend's games
-Being able to do everything while listening to music in XMB (why does my music need to stop to be able to see my internet connection or a friend's profile?)
-XMB support for the Playstation Store

Am I asking too much? Is ps3 not strong enough?

Haven't we learnt to take Sony fanboy claims like these with a grain of salt by now?

Plus while I haven't got a 360, there is no way a firmware update is going to help improve the online gaming aspect of the PSN unless they also change a lot of infrastructure in the back end at the same time.

True, I'm also curious what the new update will bring.

But maybe the infrastructure is allready updated, and the new firmware will deploy those changes.

DVR