I don't see how you can even compete with CoD4 in terms of FPS. I've played all the big ones, Killzone 2, Resistance 2, Halo 3, CoD:WAW but CoD4 beats them all. Modern Warfare 2 will probably kill CoD4.
But I have to say, fighting games online are awesome. Back in the early years of this generation I played DoA4 so much online. It was a game that if a player exploited a certain character with the same moves over and over again (for example Ryu Hayabusa's move where he would flip back then lunge forward) you could easily figure out the counter for them so if you were knowledgable, anyone exploiting couldn't beat you by beiing cheap. Where as Soul Calibur 4 Kilik = instant win.
Unless you're a person who has LOTS AND LOTS of games, I can see it being managable for a while. Looking at PSN, I haven't seen a whole lot of games eclipse about 700mb. But if you need more, thats what the card slot is for.
The Go is going to be my first PSP honestly, because I just don't want to deal with UMDs and having your whole game collection on the system is a plus.
The fact of the matter is that there are no moving parts in the PSP Go, so I'm willing to bet despite what anyone says, I'm willing to be tby the release, the battery power will be upgraded even slightly at least.
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