People may not know this, but many PS2 games were 512x512.
512x512 was for PAL regions, IIRC (Europe), and NTSC versions used 512x448. The overscan on most normal TVs is bad enough that you can crop the vertical resolution to 420 or 430 and be fine. 448 was a nice safe figure, as it does date back to NTSC region titles for the NES (possibly earlier, somebody else may know better).
im not sure any game uses the full 333mhz yet, but that said burnout legends looks and runs great at 222mhz.
That's because they can't... at least not through normal means. This probably relates back to the same thing that was mentioned earlier about the battery, but Sony's API locks out anything above 222 MHz. There's an API function for setting the clock speed, but it won't set anything about 222. Now chances are that you can just go into the code for this API function and make your own version that doesn't max out at 222, but I think developers care about making sure the battery lasts long enough that you can play their product for a while.
Also, the CPU never runs continuously at one speed anyway -- clock-locking by software is not a *HARD* lock, or so I'm led to believe. You gotta love Sony's "blank page paradox."
So how about bumpmapping on PSP?
AFAICS, no. The GE is a single-texturing fixed-function GPU -- that much was said in a dozen interviews with various PSP developers. Doesn't do anything special, except maybe at the vertex level, if compared to the fixed-function path of other GPUs... not that anyone really uses those features yet, FWIW.