Alright well beside from the webrowser there is pretty much alot of technical stuff that was done. The main thing was different media support for movies and music. You can also have a personalized backround of any picture you want. You can view movies in 4:3. And a huge list of stuff was fixed/added it is on one of the sticked threads either here or in PSP Discussion.
As for web browsing, yeah it kind of is anoying because you have to use the psp letter/number typing pad, But other than that it is bearable if you are just sitting at a hot spot with nothing to do.
In answer to your third question, if you are talking about ISO's then those are illegal and we can't talk about them on this forum. But if you are talking about homebrew games, then no. Nothing homebrew works on v2.0 accept for 1 or to apps I think.
-Hope that helped, (btw you posted this in the wrong forum)
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Hardware: US 1.5 psp, 1gb sandisk
Games: Ridge Racer, NFSU, Untold Legends, Lumines, Twisted Metal: Head On, Burnout Legends
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