Is there a better version to buy for homebrewing?
No. All that matters is firmware, and the most recently released 3.36 can still work with existing homebrew, although 3.18 is recommended if you want to have hope for the web exploit that hasn't gotten any closer to kernel access since its discovery Fall 2014.
Can I play PS Vita ISO's on a homebrewed PS Vita?
No. Vita mode has not been cracked. All the homebrew available and exploits around are only for PSP mode.
If yes, does anyone know if Sword Art Online: Hollow Fragment" is playable?
Refer to above.
How would I create an ISO of a game I own?
You can back up all games with CMA, but obviously that won't be an easily usable ISO format. The short of it is that there is no way to create an unprotected backup at this point in time.
What is the smoothest way to homebrew?
For the PSP mode stuff mentioned, honestly, it isn't super simple. You need particular exploit games, and if on a lower firmware, you need a PS3 to transfer those games to the Vita to begin with. You should refer to wololo.net for all the various tutorials and information. That site is really the hub for all of it.
What are some of the best features of homebrewing?
Basically you have all the features of a homebrewed PSP. No more, and for the most part no less, although on 3.36 you only can use ARK-2 and no variation of the TN CFW, which means no sound on PS1 games. The pro to that is that you can still use all of the Vita's features.
