As I say in every PSP 2 thread...
Make something close to this -

Games - Don't be afraid to splash out on developers and encourage them to work on PSP2. Offer to publish and advertise the games for them. New, original games... Only available on PSP2.
Don't put Valkyria Chronicles 4 on it.
Make that screen a touch screen.
Give it a UMD Drive, for backwards compatible PSP games.
Give it full PSN support.
Give it a camera on the front and back.
Sony also need to keep the Japan support they have on PSP right now.
Make it possible to play games like Call of Duty online while on the go.
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