I'm not as well versed on these things as I really should be, seeing as how this is supposed to be my field of expertise and all... but I was thinking about the possibility of using our beloved UMD movies/games on a television.
according to gamespot, a PSP's screen resolution comes out to 480 x 272. A standard television is 640 x 480. If we stuck the psp image onto a TV, and threw a boarder around it, like Super Game Boy did on SNES, we would have PSP software running on the screen , but not at full screen.
Of course the fact that they seem to be pushing HD shoots my theory to hell, because I believe that resolution would leave the psp picture to be very small.
Of course $ony wouldn't want to lose their portable market to the home console, so there will, as announced, be some way of using the PSP with the PS3, so it's an added bonus to anyone who has both.
It's very late, and I am tired. Perhaps I should stop shooting theories around until the PS3 exists in our homes.