"Rise from your grave!"
Coming this Fall, PSP store will actually be available straight to the PSP through WiFi. Yet another move to rid the PSP of physical media. Sony sure does move slowly, but they seem to be headed in the right direction.
Link: http://www.pspfanboy.com/2008/09/02/psp-wi-fi-store-coming-in-fall-new-ps3-infrastructure-mode-anno/
Also, the article mentions that the PSP will be able to connect to the PS3 to create an "infrastructure mode." In other words, Monster Hunter 2 (a local-only multiplayer game) will be turned into a full on over the internet multiplayer game.
My Top 5:
Shadow of the Colossus, Metal Gear Solid 3, Shenmue, Skies of Arcadia, Chrono Trigger
My 2 nex-gen systems: PS3 
and Wii 
Prediction Aug '08: We see the PSP2 released fall '09. Graphically, it's basically the same as the current system. UMD drive ditched and replaced by 4-8gb on board flash memory. Other upgrades: 2nd analog nub, touchscreen, blutooth, motion sensor. Design: Flip-style or slider. Size: Think Iphone. Cost: $199. Will be profitable on day 1.
