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While additional RAM would be nice, in the interest of keeping full platform compatibility, it seems very unlikely.

Developers wouldn't be able to use it to run their programs/games, so its use would be limited to multimedia and basic system functions only.

Rather than add more onboard RAM, a reduction in overhead for the PSP OS would be more likely.

Reduction in power consumption, rather than a simple increase in battery size would make more sense as well, not that there is ever an instance in which a higher capacity isn't better.

But an improved display and integrated mic (skype phone) is a nice addition to the PSP platform, even if it is essentially a minor update.

I'm picking one up as soon as they start shipping.