A very basic "Hello World" program for the PSP version 2.0 firmware has been released. As PSPUpdates say, there's still a way to go, but the app represents a significant milestone for full homebrew programs on version 2.0:Unsigned code can only be run in the area of memory exploited by the buffer overflow (64Kb). In order to allocate enough RAM to run proper homebrew (e.g. emulators) kernel access is required. Only kernel code can allocate memory to user processes (homebrew). This is where we are at the moment. In order to get a fully exploited system, the kernel needs to be attacked. Then the PSP will be under total control of the homebrew code.
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