OMG xD

Well only one of those things is probubly true, its between PS2 and PS3 graphics. I highly doubt it will have the power of the PS3 and most definatly not superior. As for watching BluRay's do you have any freaking clue how huge the console would have to be.

My best guess is

-UMD backwards compatability

-Full 1080 resolution screen

-Touch screen capabilities

- Graphics in line with 360

-NetFlix availible

Then the question has to be will and can Sony copy Nintendo's move to 3D? I doubt that the PSP2 will be 3D but you never know , everyone knows Sony is good at Innovat....stealing!

Does it makes sandwiches?

Double post: Fail

I will wait for $1200 Go version, no games required.

is that why the ps3 was going 3d before nintendo announced the 3ds?

So you are saying the 360s graphics are in between the PS2 and the PS3? Do yourself a favor and play some Halo:Reach and watch some Gears 3 videos. 360 is capable of anything the PS3 has put out.

Edit: I forgot Rage, Bulletstorm and Crysis 2.

Yes cause everyone knows that Sony invented 3D and it hasn't really been around for 60 years.

UMD (or any optical media) is not a good for a hand-held requires to much battery.

1080p on a hand-held is not only necessary but would also  be obscenely expensive, and would require a incredible DPI, the smallest 1080p screen I have ever heard of was ~6 inches the iPhone is considered to have a high resolution screen for a device that small and it has 960 × 640 that's not even a third of the number of pixels of a  1080p screen. 

the question is if they will use a multi-touch 

unless they wan't to fail with their $1,000 and one hour battery life hand-held. ~double the iPhone 4 sounds about right to me with the main boost being to the GPU and probably less ram, assuming it's coming out late next year this might be possible if the next gen tegra actually performs to expectations and meets power consumption goals.

no doubt about that

considering Sony confirmed they were developing glasses free screens this year I think 3D is likely.