I have both! Hooray owning two PSPs!
Also, their argument is more about the whole "if you don't buy what they make, how do they know you want more of it, or why should they keep doing it if they don't get paid to do it" thing that comes up from not buying games. If you buy a UMD and patch it yourself, cool. You don't necessarily need to say you use CFW and do that - if you don't specify how you play, then it's assumed it's legal and nobody cares.
At least, I think that's the point they're trying to make. I could be wrong. Personally, I don't see harm in making an ISO of a game you bought and used only for yourself on your one system or something - I'd equate it to ripping a CD's tracks as MP3s as opposed to buying the album off of Itunes or something. You don't distribute it, then who cares. If you buy one copy, then give "copies" to your friends and such, then it's an issue.
Anyway, like others said, let's all just shaddup and play.
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