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Well in terms of rumors, IGN is legit. Knowing Sony, the PSP2 will have power in between the Wii/360. This seems like a bad idea because of the fact that it will be a portable PS3 (AGAIN). That is what steered devs away from the first PSP (that and piracy).  If Sony has leaned anything this gen, its: make a portable system PORTABLE. If the PSP2 were to launch with those specs, Sony's setting themselves up for PSP vs DS round 2.

On another note, no games have been confirmed yet, Sony said that there wouldn't be glasses-less 3D, and the PSPPhone is practically confirmed with that video.

With all that being said, I'd rather Sony take on the iPhone than the 3DS. Like I said, PSP vs DS round 2.