From some rumors I've read, the PSP2 will use a halved version of the Cell chip, which going by memory, the Cell runs at about 3.2 ghz, so a 1.6 ghz would be nice, it would out do the PSPhone which should carry a 1ghz chip. The Chinese website that dissected the PSPhone has said the chip inside the PSPhone is pretty fast and might be over-clocked above the 1 ghz range.
Considering the PS3 with a Cell chip can be had for 500 bucks here in Australia, halving the Cell chip should save costs, plus with everything already built, like touch screens, gyro senors and stuff like that, Sony don't have to invest money into those things and instead just buy the components in bulk.
My best guess is that the PSPhone will be a high quality end product thus producing a very high price. Now if the software isn't priced to Apple's itunes prices, then there will be trouble. I want to play Space Miner Bust and Blast with the new d-pad controls, I guess it will be 'another price to pay' for convenience.
