I must say, this is really a brilliant move. It shores up Android gaming to a reasonable spec and QC, something that's obviously been terribly lacking, and looks to instantly bring a catalog of respected PS1 games, sub-based music, movie service, etc.
So in one move, Sony may have 'fixed' some of Android's biggest flaws with respect to content and services versus the competition. However, it doesn't stop there. By making this run in PSP2 as well, it looks to instantly solve the problem of casual content on their 'real' portable. It even extends further to include content and service synergy between tablets, PS3, TV's, etc.
This could actually help to compete with Apple's ecosystem model. While I don't expect it to be as tightly coupled, nor as 'clean', it has the potential to extend to a much greater variety of products.
Color me shocked/impressed/happy