Well news i found out yesterday was that a certain person has cracked the latest firmware update on the psp. Thats 3.03 as far as i know, and the comments left for the news was that it works and we will have to wait until sony release 3.04.
To be honest this opens up a world as to what you can use your psp for. One thing i wouldn't use it for is illegal downloaded games, because you will be killing the market in the end, because i don't think the market is that big at the moment. Still looking at the pre releases, its looking good. Only problem i have with mine is that due to being a US machine, i can't buy movies on umd here because of region encoding.
Games are ok because I have already bought a few and plan on getting some more. But the homebrew market has some interesting applications out there.