#20. It's called Software Emulation, the 80GB sku does it, so it IS possible with the RSX, just not full compatability. Most of the bigger games can play on it though.

#18 I doubt Sony is concern about completing with themself, they are more concern about completing with Xbox/Wii. If they can cut cost and sell more units, they will.

If this rumor of adding ps2 bc to 40GB via firmware is true then my guess of their future lineup will be..

PS3 40GB(2USB, no ps2 gpu, no ps2 EE, ~70% ps2 BC via full software emul) + 1 dual shock 3 - $399

PS3 120GB(4USB, multi card reader, no ps2 gpu, no ps2 EE, ~70% ps2 BC via full software emul) + MGS 4 + 1 dual shock 3 - $499

for $100 extra, you get 80 more GB, 2 more usb, card reader and MGS4.. it's not a bad deal.. no, adding ps2 BC to 40GB model will not kill their higher end models.

#20 It really depends on if Sony can figure out how to emulate the GS(ps2 gpu) with the RSX(ps3 gpu). And this is done via software so yes it's possible via a firmware upgrade. They've already figured out how to emulate the emotion engine(ps2 cpu) on the 80GB with the cell(ps3 cpu), emulating the GS via the RSX is the next logical step.

this thing is still way too much for what it does