Replacing the common LED screen found in most display technology, a super thin OLED screen allows for a far richer colour display, including near absolute blacks and contrast ratios, as well as a near perfect response time. Lower power and consumption and touch response are the cherries on top.
The other piece of speculation is that the PSP2 will include 3G support for online play on the go, as well as the downloading of software and movies, though will not include support for phone calls.
At this point in time it is impossible to say whether or not these rumours are true. On one hand an OLED touch screen seems almost too good to be true, but on the other Nikkei has been a surprisingly reliable source of rumours, having leaked information on certain components of Nintendo's 3DS before they became public.
We'll no doubt find out the truth on the January 27, when Sony host their PlayStation Meeting event.

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