Anyone who had modded around with there psp a little bit knows that games can be played off the Memory stick if it is large enouph. In fact it plays better then the UMD with loading things that would normally take 10 - 20 seconds in 2-3 and not only that, It takes much less battery life to run from the memory stick.
Umd, while working ok is a big flaw for PSP. Developers need a way to sell there games though somehow in a store considering not everyone has the means to download a game from the web on to a psp, or a way to store it if they have a minimal computer, so umd was needed.
Why not just make the games for PSP2 on a memory stick. Most games rae only 600 - 800 MB and 1 gig sticks are dropping down in price and are already pretty cheap. The psp2 itself could have 2 stick slots 1 for your standard stick to hold music game saves etc. and one for the game iself. Then assuming they use the same design as the old psp what the could do is instead of a UMD tray, redisign the inside of that try to hold Memory Stick games instead.
CURRENTLY PLAYING: Warframe, Witcher 2









