It doesn't - the "relationship" between EE and IOP is not a simple master slave. From what I remember of my architecture classes you would need to adjust the "DSP" hardware to make this to work, and in that case the whole thing seems completely pointless.It should.
IOP is already dirt cheap and avoids all the hassles of emulation. You're basically insisting that Sony should do something that is more expensive AND less reliable just for the sake of keeping you happy.
It's more likely PSX won't play games on startup because EE boots up with the GUI/OS for Movie play/browsing. Games don't run under that OS, so you reboot for them (much like dualbooting on PC when only one OS can run the game).This is why "PSX" won't play PSX1 & PSX2 titles at power-up, it will have to reboot to go into a compatibility mode to play those.