There's been a lot of speculation about the PSP homebrew scene dying, but a quick check on serious development websites will let you know that it's just not happening. The scene is very much alive and kicking, and even if you don't read about it, significant progress is consistantly being made. There are a lot of developers out there that don't make regular updates/releases, but that doesn't mean that they're not out there. Haven't you noticed that most releases are v 0.x? That means that they're incomplete, essentially beta releases (even if they are stable betas).
The scene has been around for a very limited time, and the initial rush of releases is just a reflection of the initial burst of discovery at being able to accomplish various tasks on the PSP. As more and more programming tasks become well established, you're naturally going to see software releases slowing down as programmers work less and less on releasing software that is purely groundbreaking in favor of working hard on software that is both useful and reliable. Keep in mind that professional software development usually uses a team of people years to reach an end product. Compare that with homebrew developers who a) usually can't depend on income from the software, and b) often can't depend on work from anyone else, and it's truly a miracle that anything gets released at all. Homebrewers are usually hobbyists. And like most hobbies, life has to come first. Exams, illness, work deadlines, all these, and other things factor into how much time a developer has to work on any given project.
Rest assured that active research is being made into the full capabilities of the PSP and how to unlock them.
Relax and hang tight, yes, even the PS ONE emulator is still under development, and very recent reports suggest that it is very close to being functional.
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