PSP redesign?

http://kotaku.com/5156291/sony-japan-looking-for-new-game-hardware-testers
http://uk.gear.ign.com/articles/948/948234p1.html
http://www.mcvuk.com/news/33063/PSP-2-rumours-are-nonsense
http://www.vg247.com/2009/02/23/source-psp-4000-has-sliding-screen-is-complete-aesthetic-overhaul/

The links above are the references I'm going to refer to in this post. I recommend reading them, but to sum it all up, earlier this year IGN reported on a survey SONY put out regarding features gamers would like to see in a future iteration of the PSP. Citing "several credible sources", IGN stated that the PSP2 was on the way, and that it wold feature a harddrive, multi-touch, and GPS, among other features. MCV responded to this article, saying that SONY had shot-down the rumor. Now, VG247 has reported that the believe a new PSP is in fact on the way, but not in the same fashion that IGN reported. They claim to be informed that the PSP-4000 (4000 referencing the fact that it is the 4th revision of the PSP) is coming, and that it features a sliding screen, as well as other cosmetic upgrades.
I am inclined to believe VG247's idea over IGN's in this case. While the prospect of a PSP2 sounds amazing to me, I just don't think it's a good time for SONY to make that move for a lot of reasons. First off, the PSP is not exactly dead yet. The system really came into it's prime over the last couple of years (thanks to titles like God of War and Monster Hunter), and is still selling well. SONY has made some good head-way int he handheld market, and while starting the next generation of handhelds while Nintendo is still fiddling around with the DS sounds good on paper, if they fail to capture people's attention they could become the next Dreamcast. SONY is currently a bit upset with the games division due to the issues with the PS3 (and their own predicted losses for this past fiscal year), so I find it hard to believe that they would get a green-light to release a new machine during such an unstable time. The PSP is already such a functional machine. For SONY to add enough features to constitute a new system, they would have to make the tough choices of selling at a high price, or taking a loss on each console, neither of which can be positive in this economy. Finally, I think a re-model would be a great way to try and get a leg-up on Nintendo. If they can use cheaper components in this new model, they could easily low-ball Nintendo on price for the DSi. The PSP currently sells for $199 with a game, movie and memory stick, so getting below Nintendo's $169 would not be hard.
Whether or not this rumor turns out true remains to be seen, but we should find out soon, since the rumors have E3 listed as the likely reveal date.