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Additional memory will cost you $20 for 64GB. I see what you're saying, but I don't think there's anything Sony could possibly do to re-enter the handheld market short of releasing a gaming phone -- which they already tried.

A Vita 2 would have to be at least as expensive as the Switch to show any meaningful upgrades over the original, and a weaker handheld will seem like a rebranding of the PSV. They'd also have to go through the trouble of supporting two different devices, which would be a huge strain on them as PSV2 games would have to be in the same ballpark scale-wise as PS4 games.