I can second this. With a small addition:
No need for internal flash memory at all. Instead provide support for standard SDHC card. To make sure consumer picks the ‘right’ memory brand (Sandisk) give a combo deal with the new player.
Current screen size and quality is average at best. Very pixilated. OLED version or at least the same size and quality as found on 1-2 year old blackberry 8800
Remove fps/sec limitation. It should handle up to 30fps/sec.