At the time of this writing, no price or release date has been announced (if it’s more than $300 I’ll be sad!), but so far the handheld system looks to be good!
It will be ditching UMD and using flash-memory cards. All games from the Playstation Store will work on it.
There’s also a GPS in this handheld, called the”NGP” (Next Generation Portable). The PSP has been out since 2005 in North America, so six or so years is perfect to release a new handheld. Definitely going to buy it as long as the price tag does not scare me away! Read more about the NGP here.