Yes, I do know that, but also I'm not wrong. 256x256 was supported. Almost all texture packs that call themselves "PSX" contain 256x256, because it just look better in so called "PSX style games". If you need 128x128, I can easily add them :)
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I'm just saying cost textures was 128x128 cause the system couldn't handle everything being 256x256. kind of annoying that they just do 256x256. cause that size was almost exclusively used for UI. if you going use that graphic quality. then commit to it. also I prefer low fidelity/ lo fi 3d for the 3DO, Jaguar Saturn, PlayStation, Nintendo 64, Apple Pippin generation.