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In AUS land you can't buy the old PS3's any more... well you can but they are hard to find and they are still priced at $999 (which is roughly $850 USD).

The new 40GB model is $699 (roughly $550 USD) and it doesn't play PS2 games... I have a PS2 but it's been packed away for a while now because I can't be fucked playing with cords any more.

Yes, that is the problem for me... there are no wireless controllers on my PS2 and I was looking forward to eventually being able to have no fucking corded controllers lying around my house any more... but it seems to be a bit of a pity because there is now way I'm ever buying a PS3 without back compat - until it's freakin cheap in a fair few years time... i'm not going to be missing much honestly.

Yep i'm coming to this debate a little late but I think this was a terrible move for Sony.