GPH built the GP2X as a media player to suit the Korean market, and according to what ED told me, they just recently began to realize people play games on it during the past few months.
Even though only ~1/25th of the sales have been in Korea, they've been marketing towards that audience. Sort of pathetic, though, that even with that as its main focus, the video player and audio player are still awful, with mediocre interfaces, a lack of features and codec support, the eBook reader is just barely functional, and the photo viewer crashes for every 8th photo. It does a much better job at running game software, yet they market it for everything else. Sheesh.
As fo the MMSP2/MP2520F, yes, it was made for a set-top box or a camera. Hence, the video decoding focus and photo zooming/scaling functionality, as well as, of course, the camera component interface.
VRender3D was designed for a game system. GPH probably didn't choose it due to cost. But it would've been a far superior choice for even 2D games, as the 2D/3D accelerator is fully OpenGL-ES compliant and would've allowed full acceleration of 2D or 3D software, providing vastly superior performance in homebrew titles and graphically intensive emulators (SNES, PSX, GBA, high-end arcade systems, and other 3D-geared systems).
Buuuut .. they didn't pick VRender3D. They picked MMSP2. It's poorly suited for the applications the GP2X was designed for. That is what Shikaku meant by 'we will suffer'.