I'm not sure where Sony is headed with its portable lineup. They seem to be launching this close to the PSP2. I'm a bit confused about it all to be honest. Will this thing be a PSP2 crossed with a phone, or a PSP crossed with a phone? IMO dedicated handhelds are on their way out, as even little kids are walking around with smartphones now. If I were in their position I would have invested everything in the Playstation phone.
Neither. It's an Android phone that's PlayStation Certified. That means the devices meets a certain minimum requirement for the processor, interface, etc.
No, this is to go alongside the NGP. The NGP will be the proper handheld, but a Playstation suite is going to be set up and there will be Playstation certified mobile phones, running Android, which will also be able to play some Playstation games. Quite a clever move really, why limit software sales to one platform when they can sell them across a whole plethora of modern phones.