It's not a smartphone, no, but it's very much like a smartphone. The whole multitouch thing, 3G, GPS, compatibility with Android apps... Sony is trying to make the PSP2/NGP as similar to a smartphone as possible, without actually making it a smartphone. And while it's always good to have new features and such...having the same exact features as a smartphone isn't really a great idea. Why? Well, for one, people who already have smartphones surely aren't going to replace their phones with a gaming system that is like their phones, and carrying around two devices that do pretty much the same thing isn't very practical, is it?
Now, in the case of the 3DS, you're getting a very different experience than on a smartphone, so having both isn't nearly as impractical. In fact, the two devices complement each other quite well. When I want to kill a few minutes with a small little game or browse the web, check Facebook, or whatnot while waiting in line or something, I pull out my iPhone. But when I want a full, complete gaming experience, whether on the go or at home, I pull out my DSi XL. Each device is suitable for different situations, and they're both used pretty much equally. But with the PSP2/NGP pushing the line between portable gaming system and smartphone, the usage between gaming system and smartphone becomes a lot more unbalanced.
Sure, with the PSP2/NGP you can play games online anywhere over 3G, browse the web and use all sorts of different downloadable apps, search maps and find directions with GPS technology, and possibly even video chat...but you can do all of that on your phone already! Plus, your phone is, you know...a phone. If you're going out and only want to take one device with you (especially with as big as the PSP2/NGP is), which one do you think you're going to take? Probably the one of more use to you; your smartphone. Now, if Sony were to actually make a PSP smartphone, that would be a different story...but then again, it wouldn't be so much of a portable gaming system as it would be a smartphone, which kinda defeats the purpose... And besides, don't we only have rumors of a PSP smartphone? For all we know, they could be completely false, or they could have been referring to the PSP2/NGP.