Here's the video proof of Lair Remote Play for you non-believers out there. The major issue, as I mentioned before, is that you have no L2 or R2 buttons, so no braking in the game, which can make things a bit difficult at times, but the game is still very playable. I friggin love this. Lets hope this isn't something Sony will be "fixing" anytime soon. As for the gameplay, it seems as smooth but the graphics by comparison are atrocious. I mean, playing this game on a big screen high-def TV with surround sound is spectacular, visually at least. Also, the lack of L2 and R2 buttons really causes issues. You can't, for instance, land. Which just plain sucks. Personally, I have not problem controlling the dragon with the motion controls, but if that's a big issue for you, then I'm sure you'd prefer this method because the controls are silky smooth.
The key thing to remember here is that this could very well be a sign of things to come. Can you imagine being able to play any of your PS3 games on your PSP anywhere in the world? Sure it's graphically watered down and their may be some button mapping issues, but it's certainly worth it to carry the game around in your pocket.