Since PS2 is still the last generation console to keep on selling, then there's no point for Sony to keep BC with their new 80 gigabyte SKU ( though just like the 40 ). Maybe this " easier transition " for Playstation 2 owners to move to Playstation 3 that they mentioned in the E3 conference indirectly confirmed future downloadable PS2 software emulation for all SKU's?

You know that's true you still can get PS2's and B/C in the PS3 might hurt sales there but it's not exactly uncommon for the leader of a last gen system to sell half way into the next gen or better. NES SNES PS1... Atari2600 all come to mind.

I think software emulation would make it easier but most people don't know about these things till they happen they're not going to follow it and such. I really feel they should have just left it in there..

^down at the EBgames around here... you can still pick up used PS1 titles.... thats pretty impressive. A little off topic though.

Also, it might be as the OP said, could also be that they will reintroduce BC in all (new from that point) models, once ps3 becomes profitable. Right now they are trying to get the most sales out of the ps2 as possible since it's making a profit.

They are still concerned about the price, and they have not managed software emulation, and so they took out the graphics chip that they needed for emulation to decrease the price