I get really irritated with all this PSPGo bashing.
Although unpopular, getting rid of the UMD, was an ambitious statement, setting the mark for next generations and hardware-wise, making a PSP that's actually pocketable (at least for a guy) is real progress.
This is a with no noubt a market failure, mainly due to the rather high price and also probably the fact that you still can't play pirated games on it, but it would really be stupid to discard all the improvements that this device brought and come up with somethig radically different.
Android is definitely a cool thing, but IMHO, adding plain simple telephony to the PSPGo would have been a wiser choice (after all, it already does Skype pretty well) and result in a less resource/battery-hungry phone