May I suggest the concept of LÖVE as a browser plugin so people can play games in their browser just as they do with the Flash plugin?

There is already quite a few Lua Players for the PSP

The original:
http://www.luaplayer.org/

Lua Player Euphoria (faster than the original)
http://code.google.com/p/luaplayereuphoria/

XtremeLua Player (the newest)
http://manitou.art.free.fr/XLP/