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I'm not even going to read the rest of this thread. I 100% disagree with the assessment that PS1 games on the PSN should be free. If PS1 games should be free, then I guess all NES, GB, SNES, GBC, GBA, N64, PS2, XBox, DS, Gamecube, and PSP games should be free because they're all on "old systems" with "old games"

Since games for nearly all of these systems are dead (DS and PSP are the only still alive ones, PS2 only has that one game left), "we've already supported the games well enough for them to be free." RIGHT?

Makes no sense. Even if I took off PSP, DS, XBox, PS2, and GC, that's still a lot of games that you think should be free and that's just dumb.

edit: even putting this solely to Sony, there's absolutely no reason they should be free.  The only reason to make it free is if you make some subscription model where you pay monthly fees (I think Sony is already doing something like this) to play a selection of games for free for a limited time.  
I should clear up that the service I'm referring to would be something like Netflix, but with games.