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Doesn't really imply it'll be a full gaming system.  Sony has mentioned they want to bring the PSN to other devices, so it could just be an iPad-like device that has some PSN support (maybe ps1 classics and PSP minis, or maybe even more).

What if they're working on three devices:

  • PSP2 - limited functionality for people that mainly want a gaming device, like the iPod Touch and music
  • PSPhone - like the iPhone
  • PSPad - like the iPad

...all of which use PSP2 branding and play PSP2, PSP1, and PS1 games. And probably PS2 games by that point as well.  That'd be interesting.

The main thing I'm looking for in their next handheld is 3G support allowing for constant PSN access.  I hope they do still create a more traditional PSP2 or a PSP2 Phone, because that's the type of device I'd prefer.  One that supports all formats the PSP supports as well as PSP2 and PS2 titles, plus allows constant Network access for friend messaging and voice chat, alongside improved Remote Play.  It would be total win.