The BC issue really is overblown, but there is clearly a demand for it. I wouldn't venture to say it's a key selling point of the PS3, but plenty of those who paid for it, use it.
I appreciate the feature and use it fairly regularly, but I'm also willing to let it go for a cheaper, smaller hardware unit that has a friendlier, much lower power consumption profile.
Why blown out of proportion? It's a pretty shakey argument if someone claims to want to purchase a $399 console to play the same games that can be played on a $129 console.
Most normal, sensible people, presumably buy a PS3 to... play PS3 games. Amazing concept.
Hypothetical retail store conversation should be something like...
Clerk: "Do you know... that you CAN'T play PS2 games on this PS3 console?!"
Customer: "But it does play PS3 games, right?"
Clerk: "Well, yes, but earlier PS3s used to play PS2 games as well."
Customer: "That's nice, but I'm really only interested in PS3 games. That's why I'm buying a PS3."
Clerk: "But have you seen how large the PS2 library is?!"
Customer: "Looks that way, but aren't those consoles only $129?"
Often, it's a case of a thrifty consumer wanting everything and wanting it as cheap as possible. Nothing wrong with that, but it's not always realistic. While shopping for consoles isn't like shopping for cars, you can see how far that line of thinking would go in that instance.
Software BC is eventually a matter of time, but it will be delayed as long as the PS2 remains in production. The main hurdle is that games must be made soft compatible on an individual basis.
The only way I see that happening in force is if Sony starts selling PS2 games on the PSN. Then... there is a strong case for them to move ahead with PS2 soft BC. Given their current push for the PSN, it doesn't seem beyond the realm of the possible.
