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I think 1.8 showed that they are working towards that final goal.
That's one way to read it, and I hope you're right. But to me it seemed more like a guarantee that we won't see this feature for quite a while yet - I can't imagine they would bother adding upscaling if they were going to replace it immediately with a far superior feature. It's possible that it would require tweaking to add support for each individual game, something like the Xbox 360 does with its BC. (The PCSX2 emulator has to do this with most games - but I think the difficulty there is getting the games to run at all, a problem Sony has already beaten. Once they're running, raising the resolution seems pretty straightforward). But I still think it would be completely worthwhile for them to do it. Start with the most popular games and drip out other ones with each update... it would just be another way to heighten people's anticipation.