Well, the removal of the emulation backwards compatibility itself was an alright move. It didn't work well enough, we got tons of complaints about games not working daily, people kept buying PS2 games with their new PS3 instead of PS3 games (most of which didn't work) and I imagine it was eating tons of resources. So yeah, the PS3 is now for people who want PS3 content, so that's ok. A kick in the groin, but better than a slow, shit and broken glass covered step on nuts.
Deciding to even attempt to do it on emulation was the bad idea 
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My 60GB runs all my pretty games perfectly and even better than my old ps2 (Including Ico and SoTC = MWAHAHHAA). In other words, this is what you have to pay for the best Ico release ever!
Seriously, I share your opinion... emulation wasn't the best choice. If they wanted to make it work, they had to put a lot of resources (to fix compatibility issues) that could go in something like more content for the new son... at the end, they have an awkward situation with a half backed BC and a console that isn't doing that well.
Oh well, when the PS2 hits $100 (and the equivalent in euros) there is not going to be a good excuse to not have one at home.
This thing is sticky, and I don't like it. I don't appreciate it.