Yeah, it seems like a complete waste of money. It looks like it's mostly used for emulators, which the PSP can do too. If anything it'd probably make more sense to get a bare bones version of Linux running on PSP to play whatever games that thing has then try and emulate PSP games on it. That's just impossible.
The PSP can emulate PS1 and below, and even kinda emulate N64. Not to mention run PSP games right off the stick. (Of course these things require a few "adjustments").
Why did you even post that thing as an alternative ... it looks like such an awful piece of machinery.
I briefly had a PSP and only a handful of games. The best was King Kong, which was suprisingly good, even if it's a bit short and the visuals quite bland.
I just dowloaded Japanese demo of Echochrome. It's very short but game is fantastic, ultimate test of cerebral fitness. Absolutely pure design is amazing, classical music soundtrack is awesome.
Can't wait for full release!