Part of what sells a premium phone is its sex appeal and there's nothing sexy about joysticks on your phone, let alone the fact that it would be a nuisance having those sticks dig into your thigh when your phone was put away in the pocket. Your suggestion about a symbiotic android/PlayStation OS though, I like that and feel that that would be the only viable option for Sony in this hypothetical situation (my reasoning being that I don't think Sony would fare well creating a full fledged mobile OS that could actually compete with iOS or Android, created by the two biggest companies in the world)
The only way this concept would work imo, would be having just a standard candy bar slab style phone that is completely touch capacitive, no joysticks or controller buttons - but instead, sold with every phone, is a high end phone "dock" that's essentially the shell of a controller with all the user inputs that your phone sits in the center of. That way you get the best of a cell phone, the best of a handheld, without having to compromise on appearance or functionality. They would also -really- have to nail the fucking marketing.
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