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It's also tech that can be expanded on, unlike PSVR which was severely limited by the camera tracking setup. It has all the components now for further iterations, inside out tracking, eye tracking for foveated rendering and great controllers that can do both hand and stick movements.

This is V1 of PSVR2, likely sold at a loss I agree, to set a baseline. Nothing is left in the way to make a wireless version, a PC compatible version, a pro 4K (per eye) version, or even a standalone version with build in processing like Quest. It's time, scale and as a result price, that are the limiting factors. Components get cheaper over time and PSVR2 first needs to start to build a user base so it will be less risky to make games for it.

BC would have been nice, maybe, however I'm glad Sony made a clean break with PSVR1. It was great for a first generation device, re-using already researched and working components (eye toy, ps move). Lot of things were learned, lot of devs got to experiment with VR, now it's time for 2nd generation VR. Trust me, a lot of generation 1 VR games are better left behind! There have been plenty hits, lot of misses as well. Plus I'm glad to put the Move controllers out to pasture. I played The Solus Project with a DS4 in my left hand and a Move controller in my right, the other laying on my knee (displaying the wrist heads up display) so I could walk, run, turn and use my hand to manipulate the environment (with moves alone, only teleportation available). Not what you call ideal...

It will be so nice not to have to fiddle with camera placement anymore, some games worked better with the camera high, some better lower, some better with the camera at an angle. (aiming down sights with the aim controller easily got it confused due to blocking the headset lights). Some were very sensitive to ambient light levels and there was always the problem of moving a controller out of the field of view of the camera.

Thus imo, no BC is a plus in this case. The good games will get an update, re-doing the control scheme. The bad ones will simply stay in gen 1. (Which you can also play on ps5 btw, but only with the old hardware)