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With the USB connectivity, would it be possible to make a homebrew app that would essentially make the PSP a PC gamepad? I know it wouldn't be put to use often, but the task would be somewhat interesting at best.
Lemme know, who knows, maybe somebody would like to attempt at this endeavor. :P
Ofcouce it is possible. It would also be possible and also easier (atleast for me since I know networking and not USP protocol) to make it a wireless controller over Wi-Fi. Latency shouldn't be a problem either from my experience with using Synergy (http://synergy2.sourceforge.net/) over Wi-Fi ;=)