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FishyJoe said:
I still think their biggest post-launch mistake was removing BC. I believe it's one of the factors that led to decline of sales in Japan. To be a total entertainment machine, you've got to play all the entertainment, not just some of it.

 But what if the reason they removed the hardware, was because they were nearing completition of a functional pure software emulator that would be introduced with firmware version 2.4, which is being rumoured to be the largest firmware update the PS3 will have. 

I mean from the start Sony wanted to have pure software emulation but fell short and were forced to actually put PS2 hardware in the PS3 for BC, now I my self am just speculating but their's no denying that  it could be a possibility.