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PSPvault's Liam McNulty has put together a guide to the various flavours of the PSP operating system that Sony updates every time hackers exploit one of the system's software flaws in order to run their own custom programs on the device.
The PSP comes right out of it's shell once it has been extended with various unofficial software applications.
http://www.psp-vault.com/Article414.psp
I love the people who say they won't upgrade from 1.5 because it means they won't be able to play home-brew games, when what they actually mean is that they won't be able to play pirated games. It's the developers too who are pirating the games, as there's very few programs that'll run on 2.x compared to 1.5, yet it's been possible to run homebrew on 2.0 systems for months now (my brother runs a SNES emulator on his 2.0 PSP).