I'm running 3.03 OE-C still
And you couldn't say "at least I have a web browser" back when 1.5 was the only homebrew-capable firmware because the much superior and faster links has been ported to the PSP, and it renders pages in a fraction of the time that the official sony web browser does.
Some of the things homebrew lets you do....
* Watch unconverted videos (MPEG, AVI, WMV, etc...)
* Watch full-resolution videos (PMP-AVC FTW!)
* Download while surfing the web (links and background downloads! w00t)
* Stream videos and music across wifi from a PC (any format, converted on-the-fly)
* Set up a wireless FTP or HTTP server (I kid you not)
* Use your computers hard drive as a memory stick (either wirelessly or via USB)
* Emulation (NES, SNES, GBA, N64, PSX, MAME, Commador64, to name a few)
* Manage the files on your memory stick (file browser w/ cut, copy, paste, and delete capabilities)
* Customize any aspect of the XMB (from the wave in the background to the font and icon set - its all changeable)
* Remove that annoying sony gameboot (both on system startup and change the one that plays when launching a game)
* Various homebrew games (from pong to doom and quake)
* Change the CPU frequency (on boot and on-the-fly) from the default of 222mhz all the way up to 333mhz (not overclocking)
* Use plugins for custom firmwares to get gameshark-style cheats