WOTS is that Sony now looking at adding a phone, touch screen and a similar iphone interface to their psp. The iphone is opening up a new market for sophisticated personal electronics combined with unsophisticated cell phone technology. Apparently, the psp phone's primary method of voice communication will be through bluetooth ear piece/headset...however, users will also be able to use it against the ear like a phone.
The gui is the easiest thing to create in these types of gadgets, so no doubt PSP phone will be really really cool, too.