Piracy on the PSP in the past has been limited to the number of game ISOs that you could fit on a memory stick. I don’t know if you’ve been paying attention, but memory sticks are not exactly the cheapest form of flash memory.
Today with the release of the “Dax ZISO Loader 0.62” you can now stream ISOs to the PSP via USB. That’s pretty hardcore. There’s a tutorial here.