You have the power connector and USB connector mixed up. The USB is on top and the power is on the bottom.
As for surfing the internet. It's possible, all you need is the game Wipeout Pure, as that is the only game available to connect to the internet to dl game content, all you need to do is trick the psp in thinking its going to wipeouts homepage, and redirect it elsewhere.. the instructions can be found here
http://www.pspcrazy.com/pspwipeoutbrowsertutorial.htm
802.11b is what it has
Also, you can use IRC, AIM, and MSN once you use the wipeout trick.
Need a keyboard for that?.. sure why not, it will be easier
http://gaming.engadget.com/entry/1234000273034408
And soon you will be able to do much.. much... MUCH more, stay tuned to
www.psp-linux.org for details on that
p.s. your right, the PSP is an amazing piece of equipment. Everytime someone see's me playing it who doesn't like games, wants to play games, its just that awesome.
anyway.. have fun, and remember, the firmware is upgradeable.. the possibilities are endless...