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Smart move by SONY, I wanted them to do this, keep it competitive.

The removal of internal storage doesn't sound too great though. I didn't mind using Memory Stick Pro Duo's to save downloaded stuff onto my PSP, but the problem is that card stayed in there all the time.

If we have to remove the external storage so we can play a game and capacity of the cards are small (under 8GB) then that will be a huge downside to the NGP, It adds hassle and confusion.

EDIT:

Forgot to add, the guy above me is right, this is speculation upon speculation. Let's just hope SONY hit the nail on the head at E3 and make a fun, state of the art console with a strong line-up of launch games. I wouldn't mind a re-design either, I would prefer a smaller PSP GO style NGP rather than a big black brick.