Crecente seems to be the only person interested in any PSP + PS3 functionality at Gamers' Day—and that's including people at Sony. The only demo seen was someone playing a Casino Royale trainer off of the PS3 on the PSP using WiFi, which works only inside your house. Eventually that will be an "anywhere" function that streams over the internet, but not now.
One feature planned is playing PSOne games you download onto your PS3 on your PSP. Using the PSP as an extra controller or extra display in games is not supported, but will come soon. However, LocationFree TV is not there and will never be there. When learning of this, Crecente punched the wall with his good hand, broke that too, and is now typing posts with two pens up his nose.
PSP To PS3 Abilities Explained [Kotaku]