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Well, I would be losing my emulators, yes, and the ability to play games for free. I would also lose the ability to play avi's, and the potential to play DivX video. Homebrew isn't just emulators. There's folks making an entire OS for PSP. After getting past encryption and dumping the bios, it may be possible for someone other than me to make a PSP web browser homebrew app without updating. I would recommend to anyone wanting to get more out of their PSP not to update if they have firmware 1.50. Not because I want everyone to play pirated games, but because I believe the homebrew community is willing to go further into the PSP's development as a multimedia unit than Sony.
This update gives us a new video format. It is, from what I understand, a proprietary Sony format. The PSP still can't play your videos at full screen.
The only reason to update would be for WPA support. I don't see any reason for Sony to have held back on the release of WPA support and the web browser. We all knew it was coming. They felt threatened, so they released it to get people away from the possibility of piracy. Next time they feel threatened, perhaps we'll see full screen video in practical formats.
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I do it for the rare drops
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