I'm kinda irritated that 1) Sony has ignored rereleasing it to the PSP and 2) that Nintendo has ignored trying to release it on the DS.
But hey....Xbox fans...enjoy it.
Actually, from what I hear, it's suppose to be one of the first downloadable PS1 games on PSP. It will still end up on PSP sometime, since Sony said they do plan to make most all games downloadable.
SCEA actually doesn't have anything against 2-D games on PSP (they do on PS2, to an extent), but they do require the 30% new content in PS1 games, to be released on PSP (which isn't 100% clear anyway).
I might download it when I get an Xbox 360, but I still have my original PS1 copy (in great shape) and I'll probably just play that on my PS3.