That could be the reason noone picked up where Potemkin left off last year. Although very promising and I believe with the source code released, there haven't been any new steps in the right direction (or any direction) after that.
Time will tell, I suppose.
Just get the source code and improve it yourself, if you really want to see it improved
PSP emulation hasn't taken mainly due to the little amount of documentation about PSP hardware itself. Current approaches go in the direction of HLEing the firmware and emulating the rest, but it's quite difficult to get right due to the rather large amount of firmware versions. The only two large low level documentations are either the
Hitmen psp reference and the information spread in the ps2dev forums, and they're far from describing all the hardware.
The most currently developer PSP emulator is
pspplayer, it seems to be showing more progress than potemkin (and has hell a lot more tools and code done). It doesn't run all the
pspsdk samples still, so still has loads of work to be done on it. So you'll have to play with your own PSP for a while
