By now everyone knows the vita is a failure. But I'm not here to discuss that. If you had to design the next PlayStation handheld, how would you do it? What kind of hardware features would it have? 

Be as detailed as possible. Everybody has different ideas. Keep in mind things like: analog sticks, touch screen, shoulder buttons, xmb/menu layout, price point, memory cards, type of games/audience ect. 

Curious to see what people come up with. 

Personally, I would buy this handheld day 1 If it had 4 shoulder buttons, and the same analog sticks as the dualshock. I can't stand the vita/psp analog sticks. I want my handheld to play and feel like my console plays. 

Lastly, what would your killer app be?

Like the Vita but with clickable thumb sticks, SD Card slot, no rear-touch pad instead have R2/L2 buttons.

No sure what my killer app would be tho.

No bubble UI. Just have a simple one. 

The Vita is a great system, but the market was always unkind to non-Nintendo handhelds. A PS handheld with at least half of the PSP support, SD card, multiplayer free of fees and decent specs, and a design similar to a Vita. Maybe more buttons instead of a rear touchscreen. PS1,PS2,PSP and if they can, PS3 emulation has to be a must, also.

This and Sony actually supporting it. 

Non-existant.

The Vita is a pretty great handheld if only it had regular SD cards and the 3DS's support it would have been a stellar console.

The handheld market really needs competition. With most of its former support going to home consoles, PC or mobile, we need a bit of fight between brands if we don't want that market to become stale. It's like water, if it isn't moving, it quickly gets stagnant and it can't be drank anymore.

I wouldn't compare the dedicated handheld market to water, more like the print media, some people are still holding on to it but in reality there's no need for it to still exist and I certainly wouldn't shed a tear if it went away.

As long as there are people interested in dedicated handhelds, there will be a need for it, and thus there will be some providing it. It may have changed a lot very fast, but a market of 60+ million users is not an small one.

I'd be fine with this as well.

However, they shouldn't make another handheld anyways.