Nah, it doesn't need a redesign, it is by far the best handheld ever from the hardware point of view. Forget about the SD cards, forget about triggers - these things, though nice, will never happen. Internal memory would be ok and probably will be introduced at some point, but really isn't necessary and especially just 2 GB - that would be a complete waste. You really don't seem to know the first thing about the problems that Vita faces. If anything, Sony should release a Vita Lite that would be cheaper and could compete with the 2DS. Then they could target the regular Vita at the core audience and try to sell the cheap one to kids with all the newly announced games for kids. Though to tell the truth, I think that the 2DS and Pokemon X/Y will make it impossible for Sony to win kids.
Still, the thing Vita really needs is more AAA games, a few from Sony's main studios, but mainly from 3rd parties. GTA, TES, Witcher, Mass Effect, next AC and CoD, ect. would finally sell the console. Going more casual and targeting the kids seems impossible now, but they can always try.
Wii U is a GCN 2 - I called it months before the release!
My Vita to-buy list: The Walking Dead, Persona 4 Golden, Need for Speed: Most Wanted, TearAway, Ys: Memories of Celceta, Muramasa: The Demon Blade, History: Legends of War, FIFA 13, Final Fantasy HD X, X-2, Worms Revolution Extreme, The Amazing Spiderman, Batman: Arkham Origins Blackgate - too many no-gaemz :/
My consoles: PS2 Slim, PS3 Slim 320 GB, PSV 32 GB, Wii, DSi.
