Great news.
I think these points would almost beat the piracy, improve the both hardware and software sales and improves the 3rd party support:
· Include all the PS3 PSN features in the firmware (friends, messages, voice chat, video chat, trophies,...)
· Let people to dump their UMD games in their Memory Stick using the firmware (now done through homebrew) in a not shareable form. Improves battery life and loading speed.
· Let the people to transfer PS1 game in disk from the PS3 to the PSP, like the people does from the PC using homebrew, disabling the games with problems and like the Custom firmware using the best version of the emulator for every game.
· To include apps in the PSN PSP store, like the I-phone. There are tons of really good and useful PSP homebrew apps.
· A better web browser (use I-phone as reference)
· Latest Divx and Flash versions support
· Java support (for browser, apps and digital games).
· License the best PSP based homebrew emulator of every platform to build a VC (include consoles, arcade and computers). Or allow them in the PSP store.
· Include some Dark Alex's Custom Firmware (or its plugins) other features in the real firmwares like speed selector, to take screenshots and videos from the games, to unlock the 4th level of screen brightness without using the AC cable, etc.
· Include the Remote Joy functionality in the firmware. It allows to use PC as display for your PSP games, and optionally using PC based controls (like wheels, pads, keyboard, Dual Shock 3...), capture images and videos, etc. And do the same work with in the PS3. It will allow PSP phat users to play in the TV.
· Longer batery life (even I'm happy with the current one)
· Take a look to Sony Eriksson division and use their cameras and GPS in a new PSP like DSi did (they can use the same functionality, software and etc than the current PSP camera and GPS).
· Drop the price of the console, the price of the games and the 3rd party royalties.
· Include a music store and make the movies store accesible from the PSP (to buy the movies shareable between PSP and PS3). Include PSP support for that free videoclip store.
· Improve the devkit making it open source and free, improve the developer support, add Java, Flash etc support in the devkit for casual / digital games and apps.
Sony, take note.