Interesting thread I saw over on NeoGAF.
While I agree with the majority of the posters in that Sony is way too deep in the PSP at the moment to drop it cold, I do kinda see what the article is saying in that something radical needs to be done to breath new life into the system (which would ultimately benefit Sony in general).
Sony is waging war on too many fronts, IMO. If you have an injured battalion barely holding their front, they need re-enforced somehow. Either replace them with a stronger battalion (i.e. introduce the PSP2), or upgrade their weaponry (i.e. better software and software support).
I own a PSP, but really haven't had much desire to play it since GoW: Chains of Olympus. I play my PS3 way more, and can't help but sympathize with the feeling that the finances put into Sony's sagging handheld market could be better put to use in the current gen. Even the PS2 is finally starting to hit the slippery slope, and its 10 year plan is quickly coming to an end.