Well, seeing as how they tested the download only waters with PSP Go and even they themselves deem that as a failure, then I don't see how this rumor of the PSP2 being like that could actually be true. More likely, they'll do something like the DS by taking a flash media format (most likely their own memory stick, as suggested in a previous post) and then further modify it to make it more difficult to be pirated. That to me seems like the most sensible thing to do, but then again this is Sony we're talking about here so don't be surprised if it ends up running on Mini Blu-ray discs, or something completely new altogether.