I love my PSP... It's a psp game player, an ipod format movie player (with a bigger screen than the video ipod), an incredible PS1 emulator (mostly better than my 2.3 ghz 64 bit AMD PC) and, with custom firmware, a great portable for NES and SNES emulation...
The guy who makes the custom firmwares (which I need only to make sure my emulators still work as well as the new PSP games working) quit... He was facing pressure (rightly so) from Sony so he dropped it... I think it's because he was working on a firmware crack for the PS3, which moves it away from the gray areas of the PSP custom firmware because PS3 openly supports linux, so there's no need for hacking firmware for homebrew. The only logical purpose for cracking the PS3 firmware is to allow for piracy. PSP, on the other hand, needs to be hacked to support things like the emulators and cwcheat... Now, I have a choice... i ditch my emulators and upgrade to play newer games, or I ditch the PSP games and keep my emulators...
Once crisis core comes out, and once Sony finally implements the PS1 ripper they promised for PS3, I may just upgrade to legitimate Sony firmware... Until then, my SNES and NES games mean too much to me... That, and I only have one demo that doesn't work on this firmware, and my only UMD game (portable ops) works fine, as do loads of older games... Hopefully Lion's war and Final Fantasy II will work on 3.40oe, but if they don't... They may force me to upgrade, too...
This is a sad day for the homebrew community.