Not really, out of all my games only GOW2 looks better on the PS3 then my PS2. Frankly the PS2 BC is nearly worthless considering that fact. PS2 games over component cables beats out the PS3's BC with HDMI.

BC should not be your gripe. Purchasing a PS3 should be about PS3 and PSN titles. PS1 classics might be a deciding factor too but idk.

The PS2 looks fine on an HD tv on mine at least, it looks even better with component cables.

BC for me isn't about the upscaled image or audio (I'm already using optical audio with my PS2 anyways), its about not having the space for both consoles. And by space I mean I've already got 5 inputs in both my TV and my Audio Receiver and I don't have room for another as well as physically I don't have the space for both on my entertainment center.

Additionally I have a principled objection to putting more money into games that I may or may not be able to play on future consoles from Sony. If I spend money a PS3 I want my money to go to a BC unit so it counts as a vote for BC in the future.

Well I get "Ghosting" via components on a LCD from last I tested, but I ended up getting a Vizio plasma last year. I have yet to test the PS2 on our new 22 inch 1080p (yes u read that right, but I cant tell the difference anyways) Vizio over components. The component on the Plasma looked good but I get lines through component which was a flaw with the system that I kinda ignored since I was using the PS2 previously on a CRT Tv. So I figured with HDMI games would look better without the lines. It's hard for me to explain but thats the jist of it. It's something I mentioned and saw on the avsforums (very tech heavy site).

PS3 for me is mainly out of the question at the price because I have so many damn games already, and the XBox was so cheap I ended up buying a second one after sales and spare coins. The second XBox only cost us $140 BRAND NEW JASPER Arcade and we bought a used 20 gig from fleabay for $23. I think It's going to be awhile before I see a PS3 at $163, and keep in mind I bought the 360 as a SECOND system. So thats how much interest I have in the PS3. No doubt I'm missing great games (Mainly MGS4 and Uncharted for me) but the sole reason I would invest in one right now is for the HDMI and what not. Looks like a dumb decision for me at anything over $200.

Oh yeah the second XBox is now my Wifes and we are going to play co-op in Left 4 Dead (yeah I put a lot of cash into the 360 by having to buy 2x copies of some games, and the extra year of Live at $32 (buy.com deal).

It would take a 300 dollar price tag and a new controller design for me. So I guess the answer is no.