There are several reasons I'm doing this, but the biggest reason is that it helps everyone. Circulating these types of games helps independent developers like myself gain exposure, promotes free applications when the mobile device market is largely dominated by apps that you have to pay for, and, if enough people start standing up and asking for it, Sony may release a firmware update for the PSVita that has Flash enabled in it. Not to mention you guys get all of these games for free.
If you have a PSP, there's really no reason for you not to download this bundle. Make sure to send this to anyone you know who has one, and be sure to spread this around as much as possible. The more people demand free games and applications for the PSP, the more games and applications will be developed.