It would be cool if it was true, but I probably messed up with my decoding of the translation. Just because it has a smaller screen, doesn't mean that it has a lower resolution, so some sort of backwards compatibility could it be possible.
Sage Labrie appear to be some sort of software development team, and from the translation it looks as though they have got a couple of games working.
QUOTE
(Sage Labrie님은 참고 하시길...), 그나저나 이제 천지를 먹다2 - Tenchi o Kurau 2 (Japan) (wofj), Warriors of Fate (World) (wof) - 를 GP2X 에서 할 수 있게 됐습니다!

(MAME GP2X 1.5)
QUOTE
(The Sage Labrie to refer, route...) That it limps but recently 2 - Tenchi o Kurau it eats heaven and earth 2 (Japan) (wofj), Warriors of Fate (World) (wof) - there was a possibility of doing from the GP2X and,! : D (MAME GP2X 1.5)
The last part of the quote could be saying "and there is a possibility of porting from the GP2X.".
Gah.. Everytime I read through the translation I change my mind on what it is saying.
QUOTE
GP32와의 호환성은 없음
Translates to
QUOTE
With GP32 compatibility nil
Having nil could mean they are saying there will be no gp32 compatibility, but why would they mention that as a feature?