Er... saying that any 2D engine on the PSP would be crap because one game's example is, is kinda like saying all girls are stunningly beautiful because you've just met Zooey Deschanel.
Mmmm.
Oh, that was out loud. Or in type. Anyway, if SI ever decided to put the 2D engine in FM Handheld, I'd be almost certain that it would be of the same quality as the PC version. The reason it doesn't and likely won't have it for some time is that it's contrary to the style of game they're attempting.
It's not the fault of the hardware if the 2D engine turns out crap.