Well, I hate to use the word "hacker", but I can't think of one better. What I meant was that the "hacked" mechanics allow you to take a copy of (I'm assuming here) a PS1 game you already own, burn an iso to memory, and play it on your PSP. The Sony way is to purchase a $600 PS3, wait for them to come out with your PS1 game, repurchase it for admittedly cheap, and then download it using the PS3 to the PSP. Hmmmm, which is more consumer friendly?
Probably they have to worry about negotiating rights to the old games, but still it's pretty obvious that they want to max the Sony bucks in the process.