I hope that they add in the full emulation package (GS+EE) back into the PS3 at some point. The PS3 is my first Sony console, and I'm having a great time with both the PS3 and PS2 library. Every PS2 game I've thrown at the 60 GB PS3 has worked flawlessly. I'll be pissed if it breaks down, and some of my PS2 games don't work on the 80 GB PS3. They either better reintroduce both chips into the PS3 or get emulation working near flawlessly (which I doubt they ever will).

Sony will rerelease many major PS2 games through PSN via emulation firmware in the future for no BC PS3s, mark my words.
The only reason they won't do it now is because:
1. they have other things on their plate (in game xmb, HOME, PSstore and money spent towards more marketing).
2. they don't want to hurt relationships between the retailers since PS2 games is still selling decent.

wait years down the road and for PS2 product sales to become stagnant and we'll be hearing announcements of "greatess PS2 hits" on PSN... (possibly for HOME "accomplishments" and trophies.)

Making the PS3 40gb completely BC though firmware updates for PS2 discs is another story though...

Yes, but the people who write the emulators don't have the same access to PS2 documentation.  Sony have to know that system like it's nothing by now.  For them, wrapping the functionality of the GSX onto the PS3's GPU via software, while still not trivial, would be *FAR* easier than it would be for everyone else.

I doubt it to be honest. I wish they would, lack of BC is the only thing stopping me buying a PS3.

I doubt theyll do it in the 40 considering they are bringing back the 80, why bother? Its only gonna cost them more money.

Heck, I'm not even that crazy for BC, I just want the greatest PS2 games on PSN. I want to play God of War etc.!

Interestingly enough ps3fanboy.com just had a link to an article that contains something about the 80gb vs the 40gb PS3 sales in North America. I'm sure if Sony can get the 80gb price production levels near similar to that of the 40gb and the retail cost comes down then i'm sure it would be easier for them to only produce 1 ps3 model.

Anyway, here it is:

BIZ: Regarding the PS3 SKU strategy, there's been some talk about the 80 GB model possibly being phased out from some of the rumblings we've heard and that Sony is looking to possibly put some more distance between the 40 GB and some new model that might come out, maybe packed in with the Dual Shock 3... but it seems like there's been so much change over the last couple years; first you had the 20 GB and the 60 GB and the 40 GB and the 80 GB. Doesn't that lead to consumer confusion to have so many different SKUs out there?

SS: It hasn't hurt Apple. Our strategy at the end of the year was to offer up a $399 40 GB, which we thought was the magic price for a Blu-ray machine and then a $499 80 GB. What we were surprised to see is that $100 really didn't matter to a certain customer. Our sales were fairly equitable according to TRST and our internal numbers through the holidays and even into January; we're pretty dry on the 80 GB as a result of us underestimating the demand for the 80 GB and thinking that most folks, because the price message was such a big part of the pundits and the analysts decrying the differences between the 360 and the PS3, [would prefer the 40 GB]. Reality is the price wasn't that big of a deal and $499 sold a lot more than we thought, so the 80 GB got dry at retail not due to us artificially compressing it but the demand became greater than we thought. So you'll see us replenish these in the marketplace. We're still committed to our current strategy and there is much to do about nothing, I think is the way to think about it.

http://www.gamedaily.com/articles/features/interview-sceas-scott-steinberg-on-ps3-momentum/?biz=1 

i doubt it. Sony has dropped BC for the 40gb already and I don't see them makinh a change that will cost them more $

i wish some random guy would make some sort of chip to play ps2 games for my 40gb.

 Aie, the world would become a better place then ;P