just wondering if they havnt just changed its looks but inside too

I think most definitely yes! The current PSP has a 333Mhz processor, which is slow... The iPhone has a 620Mhz processor underclocked to 420Mhz. As many have stated the PSP Go is seen as a competitor to the iPhone/Touch so I'm guessing at the very least it will be slightly more powerful than the iPhone, and hopefully above 700Mhz. But you never know.....

The games are likely to come on little flash cards, or be downloadable. So the load times should be significantly reduced.

I doubt it... IMO they will use the same 333 MHZ processor. They will release the same games as they do on the old models so no need for a power bump ;)

No, they want the PSP GO! to compete with the Ipod touch

I hope it is a lot better, not that the psp had bad looking games