Would people be willing to pay any premium for my PS3?  Its a launch 20 GB model.  It now has a 120GB hard drive, no wifi, full backwards compatabilty.  What other models out there for sale now include full backwards compatability?

I think I recall the 60GB model selling for a little more than the typical resale cost(around 500$) when the 40GB and 80GB became the only models. I think now that the next model is going to completely lack it(think I read that somewhere can anybody confirm?) you might get a decent return on it but don't expect a premium.

You might get some value. Most people probably saw what Sony is doing and either bought another PS2 or kept their PS2's and just bought a 40GB or the now 80GB and is settle with the lack of BC or they might want it.

Either way the PS3 you have is worth some value considering if you advertise that its a full BC PS3 that contains a 120GB HDD. Now that might grab some eyes and twist heads.

so there is NO full BC model on the market? USA

If by premium you mean half of what you paid for it at retail, sure. The HDD and whatever games you have to go with it might, might, see returns nearing the original cost of the machine. If your games are numerous and desirable.

I think in the future through firmware updates the Ps3 will have a full emulator for Ps2 games. The old 80gb already has to download a update to play more Ps2 games from PSN store. I'm  not sure if it's possible but it would be a good idea. Or they can release Ps2 hits on Psn store like Ps1 classics. Phil Harrison and Jack have said they think BC is important so I don't think Jack wants to let it go forever but sees it as a way to boost Ps2 sales and get people to buy Ps3 software for Ps3 hardware instead of buying Ps2 games for the Ps3.

by premium i mean get what a new ps3 would cost for my used ps3

I'm not selling my games, the goal is to turn my ps3 into a new one. I like the idea of another year of warranty and getting wifi. the backwards compatability means very little to me.

It kind of sucks... also that word comes to mind with the 360 HDD... you need it to have BC... they have to pay royalties to Nvidia and maybe Intel because of the emulation of their hardware... would explain it's cost maybe... but on topic... I def would search for a 60 gig if I had the money to get one.