Let's give Sony a little credit here, I think they realize that battery life is very important(I imagine someone at Sony has played a game gear before), and I'm sure they have a team hard at work to make sure they make it last as long as it can on as little juice as possible(I'm bettin' on a battery pack). They certainly have the resources to fund the research.
As for the specs, they sound interesting to say the least, I think E3 next year is going to be exciting.
Sony are the masters of over hyping things. I still havent seen a PS2 game that has the graphics of toy story due to the NURBs technology or a game that conveys the so called "Emotion" engine as was originally promised.
I think Sony knows what they're doing. Given their connections in movies, television, and music, which helped them in their gaming division, they will probably be able to pull this one through. I am interested in the PSP, especially its media playback capabilities. The only thing I'm really concerned about is heat- I can definitely see a PSP getting toasty.
Hopefully this'll give Nintendo a kick up the arse so they can come out with something better. I love my SP, but I'm sure portable technology could be much more than what Nintendo have been putting out over the past few years.