Sony's [NYSE:SNE] cheery little Internet companion, the mylo 2, is getting an extensive upgrade that has the potential to bring it into some semblance of relevance in the consumer tech world. Like many of Sony's odd pet projects, the mylo marches to the beat of its own (overpriced) drum, but is slowly coming to embody more of the 21st century device that consumers expect. That's thanks to a new software revision, called 1.201, which will add support for video recording, improve YouTube Flash playback, allow the use of 16GB MD Duo cards and adds the ability to format Memory Sticks. Those improvements are copupled with new support for WMV files and the SHOUTcast widget, making the mylo a more video-centric gadget than it has been in the past. Since many mobile phones already feature funcitonality like this, it's hard to see what advantage the non-cellular mylo has to offer users, but its small-yet-devoted fan base is enough to suggest that perhaps all-in-one mobile phones aren't the be-all, end-all of multimedia devices.