What do you think of Sony's rumoured direction with the PSP2?

Recently an article surfaced on a blog site (which was late with the news as I believe CVG and others had this news at E3! way before TGS) about supposed features of the PSP2.

In a way the sources have been varied, the PSP2 clearly exists as a unit, but Sony haven't refined it enough to have an early showing (or hype) as Nintendo were able to do with the Nintendo 3DS.

So it includes a HD display (similar to iPhone retina display? Or new technology?) and a rear touch panel. It has over-heating issues at the moment so a good guess is Sony are sticking with TEGRA and will perhaps have a propietary one made to circumvent the heating issue.

So I ask you to think of this device... What does the front look like? What does the back? What are the advantages and disadvantages of a rear touch panel? Is there enough unique elements to make it a worthy device to take on the 3DS (which I believe will be the FIRST consumer parallax 3D display at a nice price)?

My opinions are I think that Sony is going with the hardcore direction, the rear panel may be a subsistute for a second analogue stick. With graphical enhancements beyond what you think are possible on a handheld, we (that is you and I who read gaming sites) are near enough sold. What this will have over the 3DS is engine capabilities of a console - sophisiticated AI, complex graphics, online matchmaking and more.

But the fact Sony are including touch controls...? Could this mean we'll also have Android or some other handheld OS on the device? Sony could even create their own marketplace such as SlideME. This'll allow true indie developers to make games SPECIFICALLY for a Playstation platform. Meaning that we have potentially thousands of games, and other useful applications, on day 1.

So at this stage it's purely speculation with rumours you can't entirely trust. But I CAN imagine that this is the direction Sony would go... I'll obviously be waiting for Sony's next big conference hoping it's being shown. I also hope Sony can have something unique to give it the edge over the iPhone and 3DS.