If you really want to play a newer game, you can upgarde to 2.0 and just downgrade later. However, you shouldn't do this often as you run the risk of bricking our PSP. Also, you can ONLY do this with 2.0. If you upgrade to 2.01 or 2.50, that's that... there's no going back.
I'm still hoping that they crack GTA as it's really the only new game I want to play. They've already cracked a few 2.0 games to work with 1.5 like The Hustle, so hopefully they can do the same for GTA.
And for the record, you can run A LOT of homebrew on 2.0 now. About the only thing you can't run that means anything to most people is the UMD Loader. You can play a large number of emulators and homebrew on 2.0