I guess you could do it via the CPU, but I'm guessing the GPU could do it much better. Has this been figured out yet?
That -- combined with more-modern font usage -- would make homebrewn software aesthetically better with very little extra effort. I think people underestimate how important little things like this are.
If the official PSP menu used DOS-like fonts with no anti-aliasing and no anti-aliased shadows, it wouldn't look nearly as sleek.