Remote play between the Vita and PS3 is normally limited to a select group of games. However, YouTube user homer49 figured out a way to stream a variety of games from his hacked PS3 (using hacked firmware 3.55) to a PS Vita. Talk about the ultimate handheld!
Official PlayStation Vita remote play support is available in PS3 firmware 4.0 and beyond. Since the last hackable version of the console's firmware is 3.55, the Vita only shows up as a mobile phone to the PS3 and somehow circumvents restriction. View some of the other videos of the hack in action at homer49's video playlist.
It is surreal to see graphically intensive games like Battlefield running well on a handheld, but then again the insane acceleration of gaming capabilities in smartphones and tablets recently has removed a bit of the shine off this development. Strangely, several news outlets reported that the experience came off as sluggish, but in my extended observations, it seems very playable.
There will be an incredible value proposition when Sony turns on the green light for full remote play functionality between the PS3 and Vita. Sony teased Killzone 3 and Little Big Planet 2 running on Vita via remote play at the Tokyo Game Show last year.