Not sure which version of the OS that PSP you've tried had, but with the latest versions you can set it to 'smart view' or something. It will then use the size (width) of the screen then for viewing sites and scales them appropriately. Works much better that way. There are some other options you have to scale the screen though.

Still, I can agree with anyone who claims that the PSP isn't exactly the perfect thing for browsing.

As far as the official games go, well there's quite a bunch I really like;

Must-play games:

God of War, Metal Gear Portable Ops, Final Fantasy Crisis Core, FieldCommander, Syphon Filter:Logan's Shadow (and also Dark Mirror), Patapon, Killzone:Liberation, both Metal Gear Ac!d 1 and 2, FlatOut:Head On, Tekken: Dark Resurrection, N+, Crush, Mercury Meltdown, Sid Meier's Pirates, Castlevania: Dracula X Chronicles, Monster Hunter 2, Daxter, Pursuit Force:Extreme Justice.

I probably missed some other good ones, but this list should give you an idea at least.

Upcoming games:

Star Wars Force Unleashed (looking great and wicked physics)
Parasite Eve: The Third Birthday

and more... (I hope, lol)

Cheers