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Fayceless said:
Lower Price or BC? Which is more you important to you? But more importantly, which is more important to the gaming market at large?

Lower price beats a feature that few people would care about. It may seem simple for PS4 to play PS3 games, they both use blu-ray after all, right? But the PS3 is so vastly different than other consoles, while the PS4 is a more standard design. It would take a lot of work to get the PS4 to properly emulate a PS3, and it might not even be possible with their different hardware designs.

What matters is transitioning to new platform from older version.  I understand possible need to drop it, but lack of backwards compatibility means a lack of a hook  for owners of prior generation to migrate up.  People will stall and wait for things to pan out and milk the content of current generation.