Almost nothing requires SDL to be installed on your machine; nearly every program out there is statically linked to SDL so the needed functionality is included inside the program (.gpe file). So don't bother unless you have something that actually needs it.
Firmware's unrelated; a program can be compiled with the SDL library an external file, or statically linked where all needed functionality from SDL is integrated into the executable itself. The only thing I can think of that wasn't statically linked were some of NK's ancient emulator releases from when the GP2X first came out.
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