According to the manual you'll be able to play content that is displayed on the PlayStation 3. Whether that actually means you'll be able to play PlayStation 3 titles on the PSP in some reduced form is anybody’s guess, but you're not able to play Blu-Ray discs or DVDs, as the material is copyrighted. Other things you may send from the PlayStation 3 could include music, video or photos. You'll also be able to set your PSP to automatically connect to the internet at a certain time to download new content automatically.
Finally, Sony has also enabled the ability to choose whether a UMD starts immediately once you insert the UMD, which is a handy feature. All in all it sounds like the 3.0 firmware update will be quite feature-packed.
Update: The PSP 3.0 firmware is now downloadable automatically, it is not yet available on the official site but can be downloaded via the PSP.
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