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From Shuhei Yoshida himself:

...will define the augmented reality experience for the kids and family, Mod Nation, LittleBigPlanet (PSP) and LittleBigPlanet Game of the Year edition will define the “play, create and share” experience that LBP kick-started last year.

Is there a Game of the Year edition in the works? What would it include?  I'd assume all the free DLC released thus far, or at least the stuff people care about, like the recently released create mode add-on pack, plus maybe the MGS4 pack for the paintinator.  ALl patches would be included as well.

Also, the online create mode is still in the works, and beta testing is currently underway!  As you can see here, beta testing was made available to selected creators from the various fansites around the web, as well as from the LittleBigWorkshop.  Maybe this will make its way into that hypothetical GotY edition as well.