Yes, a new US PSP can be had for $250 and it is true that the 1.5 version PSP's have been cracked. There is a chance, however, that a new PSP will have the 1.51 or 1.52 firmware versions which have not been cracked. Also, some people would prefer not to use the swap trick and instead just boot straight off a single memory stick.
No one has been able to boot a backup of a PSP UMD yet, but there is a chance that it will only be possible on the 1.0 PSP's. There is also a chance that it will be possible on any PSP, but no one knows for certain.
(I am not advocating piracy, merely pointing out a possible fair use situation...)