Well, cheap is not what matters.

A very small CRT TV is also cheap, and also a FM radio is cheap. A Mp3 player is also very cheap.

N800 does all of this, and software was made for it, so CHEAP is not an excuse.

Now, about the power to keep up. Since we are talking about a transcoded stream, and the N800 can do this very well (I use Tversity on my PC to stream to my n800 using Canola), we cannot talk about lack of power.

All that is required is some knowledge on the formats streammed so that the N800 can receive the image and audio (and they are not uncommon) and send inputs that can be acknowledged by the PS3 as the PSP buttons.