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They would have to make a Vita 2.0..... as powerfull as the Switch... backwards compat with PS Vita games.

It would need;
designed to be high perf/$ (remove stuff not needed in it, eg touch pads on back, stuff like that)
normal cheap memory storage option (for digitial only users).

 

Im more for Sony makeing a Smart Phone, they call a Playstation Phone 1.

It comes with a attachable controller, you slide  the phone into. Every single unit sold will be with a controller for the phone.

Its own OS, runs all Vita/PSP/PS2 games.

Features might not be a huge thing, app's wise, but it ll have games, and do most of the basic things people use a phone for.