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Also, PS2 games can be copied burnt and read from a DVD disc by a non hardware modded PS2.
PS2 games are stored on slightly customized DVD discs. The PS4 can undoubtedly read PS2 discs, of that I am 100% certain. The deciding factor will not be royalties either as Sony won't have to renew any kind of license or so on for aa game that's already been printed and purchased. The one factor we have to worry about here will be whether or not Sony wants really good PR, or would rather have a small portion of their classics revenue taken out. I'm hoping this chunk of revenue will be worth the PR instead, but we'll see