Surprised there isn't a thread on this yet, but it's finally official.
http://www.engadget.com/2011/01/27/sony-psp2-ngp-a-closer-look/
http://www.engadget.com/2011/01/27/the-sony-psp2/Specs include a quad-core ARM Cortex-A9 processor, 5-inch touchscreen OLED display with 960 x 544 resolution, dual analog sticks (not nubs as on the current generation), 3G, WiFi, GPS, a rear-mounted touchpad, the same accelerometer / gyroscope motion sensing as in the PlayStation Move, an electronic compass, and cameras on both the front and back. Available this holiday season.
Games will come on "new media," not UMD anymore, but we're unclear on what sort of flash memory is being used.
http://www.engadget.com/2011/01/27/sony-psp2-ngp-a-closer-look/