Well, 1.50 is the original 'golden firmware', yes.
Homebrew applications are games and utilities that hundreds of friendly programmers and coders create for the hundreds of thousands of PSP users around the world. The programs range from classic arcade games, to console emulators like the PS1 emulator, and PSP ISO loaders, allowing you to play official games from your memory stick.
1.50 is good, as it allows any piece of homebrew to be loaded, and is optimum for doing that sort of thing.
Though, there is one better; 3.03 OE-B. This isn't the official 3.03, it's much, much better. It's been crafted and blended with 1.50 to create a firmware with all the official features, combined with
full homebrew, even better than 1.50.
On OE-B, you can play any of your downloaded or backed up PS1 games on the PSP at full speed, use any homebrew, all the new features such as the web broswer, extra stuff like full screen video, the ability to cheat in games and to load homebrew modules to customize your experience. It also has a built-in recovery menu so that you can recover your PSP from flashing bad things to your PSP.
You'll want to downgrade to 1.50, then update to 3.03 OE-A, then to OE-B (the only possible route). PSP hacking isn't like phone hacking. It isn't the crude, unsafe stuff junk you find on a mobile, it's smooth, clean, legal, and safe. (So long as you follow instructions).
So, what do you say, wanna' make your PSP like nothing you have ever seen?

If you want to, then say the word; if not, I suggest you update to the latest official firmware, which may never have homebrew, and play those horrible official demo games and pay for a few PS1 games, instead of unlimited, fun and FREE homebrew games, applications, and PS1 games....
It's a red pill - blue pill situation!