sony ericsson new phones use a combo microSD and m2 cards.
but i believe UMD drive may be keep for compatibility until they put everything and i mean everything on the psn.
so psp go is like psp 2?.
Not including built in memory just confuses the consumer. This is supposed to be primarily a download device. How can you not include memory? Plus, just because memory sticks can be upgraded with newer faster technology, doesn't mean the old hardware that reads the memory sticks can automatically utilize the upgraded speed. So that whole upgradability angle is bunk. Sony's going to follow Apple's model and have an 8gb and 16gb model. That helps prevent piracy, which is Sony's #1 concern. If Sony's really nice they may throw a memory stick slot on the system so that people can add memory, but that's unlikely.
My Top 5:
Shadow of the Colossus, Metal Gear Solid 3, Shenmue, Skies of Arcadia, Chrono Trigger
My 2 nex-gen systems: PS3 
and Wii 
Prediction Aug '08: We see the PSP2 released fall '09. Graphically, it's basically the same as the current system. UMD drive ditched and replaced by 4-8gb on board flash memory. Other upgrades: 2nd analog nub, touchscreen, blutooth, motion sensor. Design: Flip-style or slider. Size: Think Iphone. Cost: $199. Will be profitable on day 1.
I don't mind an external memory, but they better have at least a 8 or 16GGB Internal Flash or HDD
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