Not a bad idea. Mobile is eating everyone lunch. Putting PSN into their phones could actually work well enough, especially in japan. PSP2 is definitely not this.
I have a feeling what they are doing is a two pronged attack. Diversify the PSP1/PS1 games onto sony ericsson phones then come out with a game only device ala the PSP2. Unfortunately I think they will make the mistake of using UMD again for PSP2, which is going to limit it again. Though its possible they may also do two different versions of the PSP2 like they have now, with most games being released on PSN and UMD.
The PSPphone will probably not be capable of playing PSP2 games. But may have the added bonus of playing normal android games.
I do kinda like the idea of replacing the crap nubs with that long touchpad thingy.
A warrior keeps death on the mind from the moment of their first breath to the moment of their last.
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