Although the PSP hardware may not change anytime soon, the system will still continue to evolve through software. John Koller reminded us that PSP has the ability to continuously expand its functionality. "We have released 13 firmware updates since launch."
I asked him about his stance on incorporating features from homebrew, and he admits that Sony actually watches what the scene does. "RSS is actually from homebrew," he admitted. Future firmware revisions may incorporate some of the additions that custom firmware users have been able to enjoy for months.
Unfortunately, full resolution AVC support doesn't seem to be on the table any time soon. Phil Harrison was actually surprised when I told him that the resolution was locked. John Koller, on the other hand, discussed how the perpetually-delayed PSP movie download service would be one way for fans to (eventually) watch full resolution videos on their handhelds.