I don't think that they should be concerned with a PSP lite, they should be working on a PSP 2. This is what they need to do with it:
2nd Analogue stick
(I don't know if this is possible) make popping out analogue sticks so they are sticks not nubs
Internal flash drive
(Blu-ray?)UMD drive (but faster)
Longer battery life
Bluetooth
I think that they should make two designs. Firstly, the PSP2, one that is roughly the same size as the current PSP (maybe a bit thinner), and with hard drive of around 2GB, for $150, without wi-fi
then the second model, the PS2P should either be a clamshell or a slide thing (like the Vaio UMPC) with a keypad on the lower level with they controls. This version should contain a 40GB hard drive, and Wi-fi and a phone (no sim card included), it would be thicker than a DS. This one would cost around $250
add me
