In short: While the PSP indeed renders compressed textures faster its not really an options since the daedalus will have to compress them on the fly in the first place which would be really slow and therefore negate the benefit of having them compressed.
At the moment we are taxing the CPU and not the rendering and such a move would only make things worse.
EDIT: (It's possible but we should, alright.)
Good to hear that from a dev. Thanks.
_________________~fifarulez~DaedalusX64 BETA 3 Rev. 719 PSPGO 6.35 PRO