All PS1 games are already playable on the PSP via emulation by way of the PS3; what would be nicer is if it was a fully supported function to rip CD based PS1 games to PS3 HDD to transfer to PSP and do so without having to use a tool kit battery or other soft/hardware crack (Pandora, PSP Blender, etc.).
I don't actually know what works legally on the PSP platform since I'm not going to start monkeying with it until the PSP-3000 hits retail.
Remote play works, but playing games off the PS3 seems like a really inefficient way of playing portable games when the games should just as well play on the device itself using a memory stick. Otherwise, it would be like playing music on an iPod only if the computer it was slaved to was on and running iTunes. Access to the one game in the PS3 disk drive isn't exactly practical either.
It's really an issue of how much revenue reselling out of print PS1 games on the PSN can generate for Sony. Adding a rip to drive ability, which only benefits those with old PS1 games, does nothing for Sony but add more perceived value to the PSP platform.
But anything that reduces the need for UMDs is better for the platform, particularly for actual use. No reliance up disk media means longer battery life, less wear and tear due to no dependence upon mechanical moving drive parts, more reliability reading off chip memory due to better shock resistance, etc. etc.
While it's nice to have a collection of UMDs if you are the collector type who favors hard media, it isn't the most practical format when it comes to actually taking a collection of softs with you on the go. I don't want to carry a wallet full of UMDs when travelling. Being able to fit a small to moderate sized collection on an 8GB memory stick would be infinitely better. I see the UMD format as the one major problem with the PSP platform, so any way of minimizing its use is preferable.
It looks like this is the direction Sony is taking the PSP platform though, and I really think it's for the better.
