i got my first psp a month before the kxploit hack came out. Originally I had a 1.50 but got a 1.0 in a trade. Playing a few old gb games on the psp was nice, since the speed was fast and I don't think I would be caught dead with my old white gameboy brick.
I use my psp now for two purposes. To test and debug psp webpages, games and apps I have been programming, and to play homebrew. I never use it for movies and rarely use it for mp3s like I would have hoped.
It has been very interesting watching the PSP scene grow. The emulators have been progressing nicely and many random/useful apps (such as pspersonalize, and its sucessor WAB skin changer, pspkick, and a grip of emulators) have been released and there is no doubt many more to be released in the future. The psp has much potential yet to be unlocked. Only recently have they major access to the psp's internal functioning and is being documented. Even futher, webpages with info are the same, no page compares to how trusty XS is yet, but there are good ones trying.
I don't use the psp nearly as much as I thought I would, and the game selection is poor yet it stayes interesting enough on its own. Luckly, Kai is around and you can play psp games online. Still we need more games. Homebrew might be a constant problem for a while with sony releasing new updates with every set of game releases, it will keep hackers on their toes unleashing each firmware to its full potential, or may eventually lead to talks of modchips, who knows...