You're both wrong as there is MIPS hardware in the Vita. Of course nobody has delayered the main SoC to prove it (there are reports behind expensive paywalls though). However, the main RAM in the psp hardware is shared with the Vita, and kermit is used to implement many of the devices (memory card for example). DMA is used for the screen buffer and a shared sram is used for other things like control input and such. A simple heuristic for reasoning that it's not emulated (but not the only reason): consider every file in the vita os0: vs0: dump that relates to the PSP. Of course we can't decrypt them, but looking at the sizes, if you remove the flash0 files (which of course takes up a lot of space), the "emulator" is ~100kb total; that's impossible without some hardware. You can compare this with the size of PSP emulator on the PS3.