Looking at the XMB I think that we can all say that the PSN is still incomplete and needs re designing.

For example: The Friends category could be simplified and put under the PSN category, your avatar could appear under the PSN category instead of on the friend list. The in-game XMB could be a re-designed aswell for a more smooth and easy to navigate experience [see images below (created byr blazinhead89]. i think the PS Store could be a bit more organised especially in the EU.

Let's put these ideas and more in a list:

Friends category simplified and put under PSN.

Your avatar and profile could be seperate from the friends list and put under PSN.

 Better and different design fro in-game XMB.

Instead of sending messages an IM service would be good.

Maybe a newly designed XMB that works like the NXE.

I can't think of anymore but if you have any ideas list them below.

All I think it needs is cross-game voice chat, faster loading of Trophies/friends profiles during a game and not having to install everything you download. Those are the only 3 things I think PSN needs at this point.

Yep, rest is perfectly fine.

Trophies need to be sorted out so you don't have to sync, and friends should be sped up

You do know that the NXE is the XMB just rotated into a different direction....

With loads of junk added in

I think Sony needs to start looking at what they can do different but exciting with the PSN and stop merely trying to play catch up with Xbox Live. That thing can still be Home, but it needs to be taken in a new direction to entice people.