My thoughts:
-Drop the 3G version completely, and price the Wifi version to 199.99
-Get the option of installing the android OS (kind of like how the PS3 had the option of doing other OS, before the got rid of it).
-Get rid of the 4GB card, and cut the prices on all the other cards (with this being proprietary still, they could use this card in the upcoming PS4 for transferring files too)
-Create 2 original IPs: one for the West, and one for the East (and make both of them something that works great on a handheld which is pick-up-and-play).
-Need to target the younger audience with games like "Sly Cooper" "Jax and Daxter" and advertise them as the mascot of sony, which is something they don't really do.
-Once they have that, get a cartoon studio involved with making cartoons (just like they do with pokemon) for the new IPs created.
-While the most highly unlikely: Get the Final Fantasy VII remake on the system (lol)
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