I'm just wondering what improvements PSP GO! offers over PSP 3000.  Are they virtually the same except for games coming as downloadable content on PSP Go! ?

It looks very comfortable and is far more portable. You dont have to carry a suitcase if you have over 10 games as it Digital download.

Superior profit margins.

It's smaller.

No other adventages.

it looks nicer

1- Smaller and can store alot of games = more portable

2- what "badgenome" said

3- It looks FANTASTIC man XD

this includes lower production costs and higher retail price, but you do get a better grip on the console and the sliding screen makes it a more confortable posture. Plus the smaller screen helps the graphics to look better (like screenshots). Also the fact that you can't buy UMDs or lend your games to your friends is compensated by an increase in battery life (30mins if I recall). Also the extended 16GB memory ensures you never miss any space on the console, unless you're one of these hardcore gamers that this device targets, in which case you'll have to backup on your comp or redownload your 1.5GB games like god of war or FFCC, this is really a good desision as we all know how much an extra 16GB would have bumped the price of the PSPGO (looking at USB keys, probably 5€). Really, this is a win win situation for everyone... errr... wait....

You can get new PSP 3000's off of ebay for $139.99 which I think is a great value when compared to DS Lite and DSi prices. I know PSPGo will be $249.99 at launch, but I think that is still a great value when compared to DS Lite and DSi pricing model.

However, if PSP3000 and PSPGO are virtually identical in what they offer, then a $139.99 PSP 3000 is a great value.

Advantages.....PsP Go high price offers the ability for a PS3 price cut. Yes......., I said it. Other than that, I dont see why individuals with a PSP 3000 would be looking to upgrade. It is smaller but no UMD, this can be seen as an advantage or dis-advantage depending on your OP. Most of my friends are not upgrading.

the only "upgrade" that i've heard of is the image quality.

if you like more compact than that's also a benefit (but it comes at the cost of the screen size which is smaller).