From what I know, only the earliest PS3s had PS2 and PS1 compatibility right out of the box. Otherwise you have to have custom firmware and a homebrew emulator for PS2 and PS1 on it, correct?
All I know, is that it was a pretty dumb thing for Sony to do, but at least it keeps the used PS2 game prices down.
When the Wii came out, used game prices for Gamecube games actually went up a bit because more people wanted Gamecube games than before.
If PS3s could still run PS2 games, more people would buy PS2 games, lowering the supply, and with an increased demand, prices would have to go up. Stupid Supply/Demand economics.
