Sony mylo: will they ever learn?

mylo, the recently announced WiFi communicator by Sony is another missed opportunity. I ranted about missing keyboard in otherwise fantastic Sony PSP. Now they release mylo - a keyboard equipped PSP2 that... does not play games... Will they ever learn?
For years it was obvious mobile phones would be used to play music. Yet Sony buried the Walkman brand and designs for a long time and could not figure how to equip and market their mobiles. Only recently they have "discovered" the phone can indeed be a Walkman (with a great market success...).

So how difficult was it to take the current PSP, give it a mylo - style keyboard and create a PSP2 (even the branding would be almost free, thanks to the PS2 popularity). This would be exactly the device loved by teenagers. Games, movies, accelerated graphics, WiFi, web browser, RSS reader (all these features are in the current PSP), plus a messenger/ email keyboard and VoIP support. Giga dollar giga market. Seems they just don't want to earn money.

I would be tempted to add a VGA screen (mylo has just 320x240) and Bluetooth, for over-the-phone 3G data connectivity when WiFi is not available. I just do not understand... they have been so close to the sweet market spot...