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The PSP has no dedicated graphics processor - it's all done on the CPU(s). And whether they are underclocked or not depends on the game. Most games released now are underclocked to 266mhz, but once we see more complex games coming out I expect they will start to use full 333mhz mode.
I don't think we will be seeing a PSP emulator any time soon on a PDA..
There is a MUCH bigger market for PSPs, and so yes, we are more likely to see PocketPC on a PSP, especially since early versions of WM ran on MIPS CPUs.
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