I agree it is unfortunate, but it was a necessary move. The original PS3's shipped with both the GS and the Emotion Engine. They removed the EE for the "software emulation PS3 version 80 gig", and ultimately removed the GS for the non-bc version we have today. Sony saved a lot of money per unit by removing these components. It was probably the only thing Sony could do once they realized that the casual elements of their user base had no desire to pay $600 for their console.
Regarding your off-topic note, the 360 began to outsell the PS3 when MS started cutting the price, there really isn't any correlation to the removal of the BC PS3.
Thanks for the input, Jeff.







