While I like getting stuff for free, I wonder what the business model will be like.

I don't know about the US, but where I live I have a legal right to make copies for my personal use, and even a few copies for my family and close friends. DRMs violate that right. The only thing that DRMs stop is small scale (at least here legal) copying, and (also legal) reselling of games. What it does not stop, in any way whatsoever, is large scale piracy. That kind of piracy that may actually hurt the business. In that case it just spurs the piracy. Spore is a prime example of this. Not to mention that even if they did not violate my rights, DRMs like SecuRom that install low level drivers that contribute nothing to the user experience, are by definition malware.

Sammojo, no it means that you don't need a HDTV if you want to plug your PSP to the TV. So instead of buying a HDTV and plug in their old psp to it, they can buy a new PSP and plug it in to their old TV.