Fanjita has posted an FAQ on the recently released 2.70 Firmware that should answer all your questions about if you should upgrade or not.

Most people are now aware that the v2.7 firmware has been released by Sony. We’ve been getting a lot of questions about it, so here’s a quick FAQ:

* Homebrew does not work on v2.7. The GTA exploit is thoroughly patched, and the TIFF exploit is still patched. If you like homebrew, DO NOT UPGRADE.
* We have no idea when homebrew will be available on v2.7. We need a whole new exploit, which could take some time. In our opinion (shared with EdisonCarter) there is no future for the GTA exploit on v2.7.
* LocoRoco is an encrypted, signed EBOOT. The only way to run homebrew in the same way is to get Sony’s encryption key and sign the homebrew. That’s not going to be possible in our lifetime.
* There could well be an exploit to be found in all the new function, e.g. flash player, AAC support, etc. We’re not actively working on one.
* There might be an exploit to be found in another game. We’re not actively working on one.
* There’s no truth in the rumour that v2.7 has made us angry, and that we’re going to work on an ISO loader as revenge.
* The LocoRoco demo REQUIRES v2.70, even if you hack the PARAM.SFO in the EBOOT. It’s pretty cool, but there’s homebrew that’s cooler.

Once again, the most important point: If you don’t think that slow support for an old version of Macromedia Flash, and support for the very latest games, is worth trading for homebrew for the next few months – then DO NOT UPGRADE.

There you have it from the man himself. If you are a homebrew fan, don’t upgrade and expect to keep playing it.

(Via PSP Updates)