The new model (which obviously won't go by the nickname "PSpee") will come in black, silver, and white, and it will also have a quarter of an inch shaved off its thickness. 4GB of NAND flash storage will reputedly be included as well, saving gamers a whole lot of money on memory sticks for media and other applications--playing with homebrew, for instance.
Word of an integrated camera may be the most interesting news, however, with a stock camera used in Sony Ericsson phones to be placed directly in the PSP logo below the portable's screen to take photos and record video. All of the video-streaming capabilities are supposed to be tied in to the rumored PlayStation HUB service, bringing one more media expression to Sony's next-gen convergence device (if this rumors pans out, of course).
[Thanks, TIP; also via Engadget & PSP Fanboy]