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I hope this isn't true because there are many PS2 discs I would buy if it meant they worked on my PS4. And it would make it so so easy for Sony to power on those SOCOM II servers again.

However I wouldn't compare it to the Virtual Console because while the VC is also an emulator, the consoles themselves aren't able to actually play the old games because they are on carts and also there are different platforms. This is a PS2 emulator added into another Playstation system that can actually read the media used to play the games. Unless there is some technical hurdle no one has uncovered yet, it appears the only reason to not allow us to use discs is to sell us digital content instead. And if true, that's garbage.