Right about now, I think a revamped PSP is the only thing that can truly save Sony's handheld ambitions in the long-term. They need to give the PSP a clean break, take stock of the lessons learned from the original then come back and improve on it.
Sony sent around a survey last night that, from this weary writer's point of view at least, looks like they may well be thinking of doing just that. They threw a bunch of questions at PSP owners about what they'd like to see improved or added to the console, some good (hard drive, GPS), some not so good (book reader) and some sadly absent (decent games), but most telling was this question:
Would you buy another PSP system if it included a hard drive and/or video out?
It's very suspicious that the single-most desirable add-on mentioned (the HDD) is repeated in a further question that specifically asks whether you'd go out and buy another PSP for it. Very suspicious indeed.