I agree that the stock Walkman player on the LwW is rubbish, it is the same as the music player on the other 2011 Xperias-just rebranded. The 2012 Walkman player is much better-there are mods based on the 2012 Walkman player available on XDA-if you wish to try them.
As for a new Walkman phone-I personally doubt there will be one. I believe this because Sony is integrating Walkman into the Xperia range (same with Cybershot). Walkman phones are only popular in asian countries not the western countries, Sony know that, thats why phones like the W8 were asian countries only and LwW is highly popular in asian countries.
I also was let down by the LwW firmware-it had nothing special-no Mega Bass or unique Walkman player. On the other hand the hardware was good-stereo speakers, Walkman lights/button...Sony (Ericsson) was known for their poor firmware/support and Sony has carried on this 'fiasco' based on their Jelly Bean roll out-in terms of timing and which phones are getting it.
On the plus side a new ICS update was recently certified and a new GB update should also be certified for the LwW-so an update may be on the way. I don't know when, as this is Sony were are dealing with :smileywink:.
