if they let people rip the games themselves then they'd make no money because there was a LOT of copied games out for the ps1 and you can pick them up cheap now from 2nd hand shops so sony will make the files a .ps file or something but it won't be long before some smarta$$ cracks it.
i wont be getting the modchip, i'll just wait to see the feedback from the games that come out for the emu and how they've been converted to the psp control's.
there's a new firmware out on thursday BUT its not got the emulator with it :-(. thats only out in october apparently, so that will give them time to iron out any bugs for it ready for the x-mas rush of buying games.