Sorry, I meant that the Shield runs emulators better than my PSP did, not that PSP games run well on the Shield. They do run, and you can get some decent FPS if you mess with the settings a lot, but you're better off streaming from your PC.
Yes you can use a bluetooth controller with it and hook it up to your tv, but if you're doing that, you might as well just play on your PC and have that extra power.
Not sure what you mean about being worried when playing SNES games - were you referring to my comments about the controller? I did get frustrated trying to play a top-down shooter because the d-pad kept registering extra presses and sending me right into bad guys. But for stuff like platformers, fighters, etc - no problem at all.
One guy modded the d-pad to reduce errors, but it looks like a lot of work...
http://forum.xda-developers.com/showthread.php?t=2417495