The PSP was apparently shipped underclocked to 222mhz to save on battery life; the processor was actually designed to run at 333mhz speed, but if it did, the battery life would be cut. Games are going to be released in the future that push the processor to that speed, so there probably won't be any problem running it at that speed other than your battery running out sooner than usual. I've run my PSP at that speed on a few emulators and haven't experienced any problem, so you should be safe. Emulators that "overclock" the PSP have been out for a whiile, so I'm sure that people would be posting about damage being done to their system by now if it were going to do so.
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