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JRPGfan said:
Vodacixi said:

Before the PS5 launched, I said I would consider buying one if it was backwards compatible with every previous PS system and if it allowed us to use all of our discs from those systems. That being the ultimate PlayStation machine would make it incredibly valuable.

People called me crazy and said that I had unreal expectations: that the disc drive would not allow it, that the hardware wouldn't be powerful enough to play PS3 games...

Well, here we are. It could be done all along. It only took a few months, a bunch of dedicated fans and a declaration of ending physical media in order to pull it off.

Honestly if the PS5 is the last system that comes with a disc drive.... it is such a waste of opportunity/potential that they didn't go for such a easy win.

The proof is there.

It is powerful enough for emulate and run PS3 games.
(not to mention ps1,ps2 games)

Why not just allow it? how much work could that really be? Give a few devs a half year or so, and see if they cannot add such functionality. 
Would be a good PR move too.

How much money would they make with people using PS1-2-3 discs to play those games?

While Sony can sell subs for the Classics.