newest beta of ffmpeg is a lot faster than that ... so far the tests I have done at 480x320 are at 2x realtime ... ie half an hour to encode a one hour clip ...
command line interface only at the moment ... so it's probably not what you want
other option is 3gpp converter, which is optimized for psp, also based on ffmpeg but uses xvid codec instead of the built in mpeg4 ... it might be a bit quicker than IC2, but not by much ...
haven't seen anything else that converts for the UX ... so if you are not a geek, stick to IC2 for the moment ...