Yes but still interesting. I think it's such a fantastic idea but in typical Sony fashion they're choosing not to turn the PSP into an actual phone and instead turn it into some clumsy VOIP handsfree webcam nightmare. If I was Sony i would have made a battery with a bulge for a sim card and a GSM aerial and leave it at that.
But Sony isn't making this. Sony Ericsson is, and they're only making (proper) phones. They're probably making a proper phone with some extra features like they have made with their "Cybershot"-phones and their "Walkman"-phones.