Minecraft PSP is a new Lamecraft mod based on s4inexcraft 1.2. Only this mod has a normal survival mode without serious freezes, bugs and lags. I am trying to make this mod more "minecrafty", so may be one day this mod will be like Minecraft PE 0.7-!
Would it allow for bigger worlds?
It's just a new Terrain. I mean it could imply that he's figured a way to make a bigger world, however the PSP has a lot of limitations since coders normally cannot tap into the potential of the motherboard without bricking the PSP.
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