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60GB is fine. Sure they could probably make it 80 or 100 but then the price would be significantly higher. IF they can come out with an affordable package makiing it $199.99 - $249.99 I think the PSP2 could have potential against its competitors.
But knowing SONY it will be priced at like $349.99 or something crazy.
Sure Nintendo hit it big with the DS Lite. But its also a lot cheaper than PSP. The PSP2 will need something unique about it to allow for unique PSP2 exclusive games. Hardware is nothing without the software that fuels it.
I would not mind seeing a touch-screen or some other nifty upgrades. It will be interesting to see how this unfolds.
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Hard drives have moving parts, so I would be paranoid to drop it, so I probably wouldn't feel comfortable traveling with it. If they add a touch screen, I will never buy another Sony product again. Ripping off other people's hard work and ideas. Snakes.
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I hope they wait a while before bringing it out so they can make it more powerful more power = more homebrew and emulation I fit had loads of power it could emulate soome very awesome systems and that 60gig hardrive would be able to hold alot of ps1 eboots.