Online gaming 

iphone and the 3DS will lack the power for Online gaming which the PSP2 can be built using 4G technology can then use it to excel in Online gaming on the move. 

Picture playing call of duty online while playing in your car on a long trip, or on the bus. 

This is what the PSP2 should offer to gamers and if SONY pulls it off with a few On-line titles such as Socom etc it can really become the must have hand held for people who like to game on-line on the move. 

throw in Android/phone abilities, PSN, and invest in getting High class iphone developers to make games for the PSP2. Then the hand held can flourish and not bite the dust to the 3DS and the iphone 

So who says 3DS Lite can't have a 4G feature too?

Nintendo is not sleeping, they know better than Sony how the handheld market works.

lol.. the Iphone has online 3g gaming.... anyway if it's in it.. it gonna be expensive to get a data plan subscription only with your phone provider with data cap.. they are already ripping us of with the tablet data plan subscriptions.. I pay like 20 dollar per gb for my ipad.. 

One more thing:

This piece of crap was capable of online gaming everywhere with a 3G connection.

And your point is?

Because this piece of crap already had 3D screen:

... Here's to hoping the PSP2 has a full touch-capable screen. It'll need that if it wants an extra edge.

PSP did have online connection again you guys are slow.

oh ouch, burn.

OT - I think the mobile market place is drastically different then it was even 5 years ago.  the rise of the smartphone is killing the market for dedicated devices everywhere from GPS to music players to e-readers.   i personlly don't see the game market going any different and that is going to be the weak point of the 3DS imo.  sony would be smart to make the psp2 a phone, there isn't going to be as big of a dedicated mobile gaming market in the future and nintendo will probably claim all of that market.

Yes, i agree this is an excellent feature.... but is it affordable, because the PSP2 will be at a disadvantage because of the (presumed) lack of 3D, thus the cost should be substantially cheaper. however if they start adding in this type of feature, will it drive production costs through the roof???

It didn't have 3G/4G service without using a cell phone as a WIFI hotspot. You had to have Wifi in order to connect online with your PSP. What the OP was describing is full wireless service support. So anywhere you can get cell phone reception, you can play online with your PSP2.