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Well, modern OpenWRT doesn't run on original WRT54G at all, and barely on the upgraded WRT54GS version, so there is that.

32MB of RAM that the PS2 had would be really tight for modern kernels.

https://openwrt.org/supported_devices/432_warning

But CPU-wise I don't foresee that ~300MHz MIPS would be any sort of major roadblock.

Currently OpenWrt uses Kernel 5.10 or 5.4.

When WRT54G was available kernel was 2.2 or 2.4

The 4x that’s important is that the smallest iteration of the WRT54G still has 4x as much RAM as a PlayStation. The CPU speed is enough, to be sure. Newer versions of OpenWrt or Linux are going to have problems with such a small amount of RAM. Note that it’s definitely possible, it’s just not comfortable.

The limiting factor on the PS1 would have been RAM. It only had 2 MB -- the WRT54G had 16 MB.

My mind is blown. Especially when knowing my WRT54G would buckle if you so much as send it more than a dozen ICMP packets per second.