This blog entry has nothing to with software BC.
Its saying that the PS3 version of SingStar can read song tracks from the PS2 DVDs.
That's all.
Since the PS3 can already ready DVDs natively, and they are nothing but encoded data discs which software emulation (of the EE) is already able to read...
This blog post has absolutely nothing to do with software BC of PS2 games -- just game data. There's a pretty big difference.
Software BC would allow Sony to offer PS2 titles as DLC (which could make Sony a lot of money), so they may very well be working on it (emulation of the GS was the only remaining issue of the current emulation, as I understand it). But the information presented here has nothing to do with its progress. It's merely a statement about how the PS3 version of SingStar is cool enough to read old PS2 SingStar tracks off PS2 SingStar DVD discs. Great for longtime SingStar fans... but this is not "real" software BC... not even close.
