I don't think 2 screens are a necessity in gaming. The DS utilized them intelligently and certainly many games benefited from it. However there are many games which are awesome, just played on a single screen. If that weren't the case console gaming would be DEAD.
I think Sony's PSP, similarly to the current PSP will focus more on translating console gaming on the go. The DS provides an entirely different experience, removed from traditional console games. Both can succeed, but Sony needs fix a number of problems that plagued the PSP to be successful. Judging by the PsP GO I'm not sure that they have learned their mistake. They're focusing too much on piracy prevention (which they SHOULD, don't get me wrong) but ignoring the other issues.