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The rumor can't be right because:

1. USB ports can't be removed. You need them for charging controllers etc. It is simply impossible.

2. "Cheaper internal memory" is very unlikely right now also because internal memory is normally MORE expensive. Even 20 GB internal memory is much more expensive than 120 GB HDD. So cheaper internal memory can't allow any installs and has to be very small.

The only part which is possible is removing Wi-Fi. But even that is unlikely because that would PSP remote play very difficult (or impossible). Wouldn't make much sense when Wi-Fi only adds 2-3 bucks to total cost.