I doubt it, for a few reasons:
1. If Sony is going to merge their whole PSP platform into Android somehow, the Xperia Play would have a lot more PSP games coming to it than just sold old PS1 titles. At the very least, PSP minis. And why not put the Playstation brand on it if it's running the same platform as the NGP?
2. If I were Sony, I would not try to make it easy to port software between PSP/NGP and Android. It would dilute the value of Sony's platform if sufficiently powerful smartphones could run the same games, and it would discourage developers from taking advantage of PSP/NGP-specific features when they can design their games for NGP plus 100 million other devices.
3. Smartphone OSes in general aren't as well-suited to the 3D performance that gaming demands as a dedicated gaming device, and that goes double for the dalvik VM that Android uses. John Carmack made a statement about the low-level APIs of a gaming device putting similar hardware 'a generation' ahead of smartphones in terms of gaming performance. I don't think Sony went through the trouble of overengineering the NGP with every feature plus a kitchen sink just so they could weigh it all down with a sluggish OS.
"The worst part about these reviews is they are [subjective]--and their scores often depend on how drunk you got the media at a Street Fighter event." — Mona Hamilton, Capcom Senior VP of Marketing
*Image indefinitely borrowed from BrainBoxLtd without his consent.
