Yes.You can run them through UMDGENv.3.5 to uncompress them though. And why do the games have to be so small.The good games can be 1gb in size.
i think half minute hero is under 1GB... zenonia is a PSP mini so you can try that game with actual buttons.
Daxter? It's supposedly the best non-naughty dog jak and daxter game, and you could always compress it. Or buy some umd-rs Also, Work Time Fun (affectionately abbreviated as WTF). It's like warioware. That alone is enough reason to grab it.
auditorium and flow are great games. they have little replayability value though. they're still amazing games :X