1.Sony should really focus in online aspect. Build in 3G and you could for example connect to PSN and play new call of duty with friends while sitting in the buss . That would be amazing selling point.
2. Build in PS2 emulator. You don't have to have as powerfull device as PS3 to run PS2 games. Just build PSP2 with somewhat similar hardware as PS2. Portable PS2 would be amazing. Sony could also start to sell PS2 games in PSN.
3. Of course also partial backwards compatibility. Not with UMD versions but at least with PSN versions of original PSP games.
4. Launching price of 199$. Graphical leap wouldn't be that amazing but little better than original xbox graphics are more than enough.
5. Dual analog like pretty many here have said.
6. More focus on producting quality games for the system. PSP lacked of serious first party effort. Sony has even bigger first party than Nintendo (Employee wise) so they should have manpower to do those games.
