All Sony really needs to do is release the current PSP with a touchscreen. That is enough for a PSP2.
I doubt the new Nintendo handheld will surpass PSP graphics. It just isn't needed.
I like my handhelds cheap, with cheap games. Not $250 at launch with $50 games.
iPhone = Great gaming device. Don't agree? Who cares, because you're wrong.
Currently playing:
Final Fantasy VI (iOS), Final Fantasy: Record Keeper (iOS) & Dragon Quest V (iOS)