Yeah, a hacked PSP is nice. Runs all sorts of emulators. There's even decent progress on N64. However if you get a newer 2000, a 3000, or a Go, then you can't yet permanently install any hacked firmware.

Sony are a bunch of jerks and their software sucks, but they do make some decent hardware. You simply buy used to avoid giving your money to jerks (and to help ensure you get one old enough for the Pandora hack) and use homebrew to avoid having to deal with their crappy software, and there you go.

You can use some firmware exploits, or a modded battery. The battery can be modified using another hacked PSP or by cutting a line on its circuit board. The battery method also needs some files to be placed on the memory stick. Unless you do it the hardware way and can't repair it afterward, there's no extra expense. However this method doesn't yet work on the newer models.

The really nice thing is it still all runs under a kernel (patched to allow it), with the memory stick, USB, etc. So you don't have a lot of the nonsense DS homebrew has - having a zillion different app loaders that don't work, DLDI, dealing with crappy card readers, etc. Also, it's a multitasking kernel - you can install plugins that play music or other nice things during games.

Do some research on how to identify PSP models and motherboard revisions, and go find one at the local pawn shop. They usually are not hard to find.