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PSP doesn't even run at 640x480, it looks like crap on a regular TV. The system is designed to run games on a 4-inch screen, not a TV screen, the TV out doesn't change that. 

Wii is a lot more powerful, look at Silent Hill on Wii vs. PSP, big difference. Monster Hunter 3 on Wii also is miles better looking than the PSP.

The PSP's analog nub also sucks, I'd rather play it on Wii. If they can do it with Silent Hill there's no reason they can't do the same with Metal Gear Solid.