1. No
2. 3.30 OE means 3.30 Open Edition, its a firmware made by Dark_Alex and team. It have 1.50 Kernal (to play hombrews, application and emulator that use 1.50 firmware) and with 3.30 additions (like web browser, location media free player, rss channels, change themes, free wifi using t-mobile, and some other things that 1.50 dont have)
PS: You will need 1.50 frimware or other Custom Firmware made by Dark_Ales and team.
3.Non1 here want to update to 3.03, they would update to 3.03 OE (Open Edition) to run the fuctions of 3.03 frimware + 1.50 hombrews.
4.Dark_Alex will let us add some things to the custom firmware like:
-custome the xmb (psp menu)
-add our plugins
-a ps1 full speed emulator (dont need a ps3)
...and other things.
5. Thats 1 point, but there are more reason to upgrade to a custome firmware
6. I had expalined it... see step 1-5 for more help... lol:D