Whyis it possible to run N64 games on the PSP without lag?

[VIRGIN KLM]

Simple. Accuracy.
Daedalus gives up accuracy for speed at severe cost of compatibility.
Also for the record, Daedalus is a pretty problematic emulator, it's ok if you try to play like 4-5 of the most famous N64 games like Mario 64 and Mario Kart 64 but for the rest they either have bugs, run slowly (with or without frameskip) or they don't run at all.
Contrary to that, I believe that Daedalus is an amazing emulator, PSP is not a hardware candidate to emulate N64's complex hardware, it's already a miracle that it can run some games at fullspeed even without being accurate.
Android emulators are hard to be made efficient.
There is so much fragmentation that restricts most of the times the possibility of creating something that will work the same way across all OEMs and hardware specs.
Double that with bizarre drivers that tend to not work properly and you get the idea of a wasted opportunity ecosystem called Android.
I still love Android though.