Solution so homebrew can prevail, and piracy still be shot down.
All of you know this but, Sony is trying to solve piracy problems by requiring firmware updates to play certain games. But, when shooting down piracy, they are also shooting down homebrew. This is a possible solution that would allow homebrew to stay alive while piracy gets killed.
Sony would sell an alternate memory stick that is too small to fit ISO's onto. The memory stick would act as a key, unlocking the firmware encryption on the PSP so it can run homebrew. The memory stick would be highly encrypted so you couldn't try to simulate it on a regular memory stick. Programming software would be included with the memory stick to allow us to easily make our own games.