You can laugh all you want at cja, but he made some valid points. The rare use of the hand, the thick grey cable (the thin one looks like a power input) and the UMD "interaction" scream mock-up hanheld.
Still, even if the non operational unit is being used just as a monitor to show some emulation work with representative purposes, the thing is trivial. As far as there is a real emulator running PSP software I can't see the problem since the final unit should run equally good if not better.
Wasn't the TGS the chosen event to present the first true PSP games?