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every ps3 can play ps1 games, so it has some sort of backwards compatablity.

the loss of ps2 game support is a big blow. Those of us that have ps3s that can run ps2 games (like mine :p) now pray nothing ever happens to the console *touches wood*.

While a mistake, it wasn't sony's biggest, and imo if they didn't make this mistake then the lack of backward support wouldn't matter so much..

... Cost..

yeah its been said a billion times in this thread. The cost of the ps3 sealed it, you throw up a 360 and ps3 at someone, show them the games (alot of crossplatform games) then show them the price.. easy decision.. What seems really odd is that people didn't like the cost of the ps3 so much that they weathered the RROD issue with the 360 (its the only reason I can think of for people not jumping ship from the 360).

Can BC be saved?

Sony already have software emulated the MIPS Processor, and it worked pretty well (my small library of ps2 games worked fine.. oh yeah got a PAL 60GB ps3 :p). While the ps2 gpu is alot more difficult to emulate, I think sony should look into it and add it in an update. If they get it working they'd make alot of owners very very happy.