I believe hlide did actually comment that he thought a PSP emu would, technically, be possible, although I can't say I quite understood why.
Paraphrasing and probably incorrectly, everything written for the PSP is written using a particular set of calls, so if you can replicate the effects of those calls, you don't need to acutally emulate a software version of the PSP's CPU (which would be impossible).
Firstly, as mentioned, I don't understand this entirely (it sound just like HLE to me). Secondly, I believe he also commented that the changes of this actually being done were second to none.
So assuming hlide is right, the chances of a PSP emu (whether playable or not) might actually be about 0.5/10. Don't consider it emulable, but don't entirely write it off either.