By now I tend to think they wil indeed leave it out until their next gen when the ps2 will be truly gone.
Though it would make sense to add it, it will fit in with their value added strategy they advertise. Or value re-added.
I'll be more interested in an emulator though if it were a way to bypass region locking, because it makes little sense when you can buy a ps1 game from any of the psn stores and play it on your ps3, but can't do that if you already own the game, and this applies to something like 70% of my ps1/ps2 games unless I'm to buy three ps3s.
Upscaling does feel good though, I loved Odin Sphere on the ps3. Then again I too have the 80gig software emulation one, and when it got stuck a few hours into Tales of the Abyss, I just went on to play the undub on my ps2.
Emulation enables them to do what Microsoft did with the XBox games: Put them up on their marketplace and resell them. Being able to emulate competently keeps a game like R-Type Final, and other games, alive. It would also enable God of War to be on sale.
I'm stumped as of why Sony doesn't seem to think that much of it, but they have done so little for ps1 titles on the psn (outside of Japan at least).
