Here's my take - for a next gen console to NOT have backward compatiblity makes it useless to me, unless it has a killer library of games in its stable.
There were a few reasons I bought a 360 - and playing my 60 some odd Xbox games was one of the main reasons. As stated earlier by Apostrovich, I have a limited amount of space, TV plugs and the like - and I see no need to fire up my Xbox just to play my games. Sure, the 360 isn't great with playing old titles, but one thing I do respect them for - when the 360 came out, they weren't screaming '100 percent backward compatiblity' - they were saying it would play a lot of Xbox games. While initially I didn't like that, I accepted it. I still have PS1 games and though I never really play them that often, knowing I can always play them really makes me feel confident in my purchase.
FTR, I have over 50 PS2 titles and like 65 Xbox titles - and having a machine not able to play any of them would really suck. Especially now, as PS3 owners are waiting for AAA titles, not having the ability to play PS1 and PS2 games severely weakens the possiblity of PS1 and PS2 gamers making the jump to the PS3.
I even have a Wii - don't have a Gamecube, but knowing my Wii can play Gamecube games, I find myself eyeing Gamecube games I wanna buy.
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