I own 2 Vitas. It doesn't need a redesign, but a price drop and third party support would be great. Gearbox Software was willing to give up their code to another studio in order to bring Borderlands 2 to the Vita and Sony didn't take them up on the offer. I wish they would've.
Cheaper to manufacture, better battery life, HDMI out, etc. True, the real problem with the system is the software, but a hardware revision would be a good way to relaunch the system.