I don't think that Sony would mind it if it means more systems will sell. Recording stuff on Tivo, download it to PSP, watch it on the bus on the way to work. Heck. That just might sell me on the PSP.
TATE shmupping on that big widescreen with MAME would be neat but I dunno how comfy it would be since you would have to use the buttons above or the R or L trigger to fire which would make holding the system kinda awkward. Emu in general should be awesome though.