Those specs are very disappointing, I was thinking it would be a Tegra 2 with its dual Cortex A9 goodness. Not saying its a better gaming platform, but the iPod Touch already blows these specs out of the water. Heck, even the last generation one did, as did the Zune HD as well as just about every smartphone released in the last 2 years.
I know bottom of the barrel specs haven't hurt Nintendo sales with the Wii or DS, but this is still disappointing.
Yo Sony, go with the Tegra 2 and 512mb RAM for the next PSP!