Some nice features:
1. New PS1 downloads will be playable on the PS3 along with the PSP.
2. Game saves can be transfered from PS3 to PSP and vice-versa so you can play PS1 games on the road and then on your TV/Monitor on the PS3.
3. Rumble is back for PS1 and PS2 games. Right now that means hooking up a dual shock 2 with a USB adapter but I'm sure that means future controllers for the PS3 will also work.
Nice update. I can now start FF2 and play it on both the PS3 and PSP.