So, the PSP 2.0 Firmware is indeed live. However, there may still be questions as to whether it’s worth it to upgrade. Yes there are cool features like the web browser, video viewing updates, network improvements, and so forth. But according to Philip Torrone over at the MAKE blog, the upgrade will also cripple your present PSP’s ability to play homebrew games, emulators, and other cool hack-tastic stuff that PSP crackers have been whipping out. If you don’t care about that, then upgrade away. But if you insist on keeping that SNES emulator, maybe not (though if your current version is 1.51 or later, you probably can’t do that anyway). Definitely something to consider before you click that upgrade button.
http://www.gizmodo.com/gadgets/portable-media/index.php#tricksy-psp-updates-118792
PSP 2.0 Update DO NOT UPDATE! [MAKE:Blog via Boing Boing]