I posted that link in the "Confirmed40gb PS3" thread.

And yep, it's true.  

well, don't most gamers have ps2's anyways? I kept mine for guitar hero.

Not saying this is a good thing ...

but the 40 gig still comes with wifi right??

Again, I don't see any reason why they couldn't just use full software emulation for backwards compatibility (the 360 does it).

Unless, of course, its just a ploy to get you to buy the more expensive version.

Shams, it's still not confirmed on the BC capability of the new PS3. It's all just rampant speculation at this point.

I think that there are more people who despise Sony and wish for failure of the PS3 that hope that they did that and it will make them laugh if it's true, so they spread that rumor passing it off as fact without anything to really base it on.

Sony has yet to release a console that does not have BC in one form or another. Also, if they were to take out BC, that would create a problem of having to push Firmware updates that would be different for those with software emulation, and those without emulation. That wouldn't make much sense to me as they would have to continually test both versions for any problems.

Until Sony says it doesn't have BC for PS2/ps1 games, I will just assume that it will have emulation.

 A ploy that would only hurt sales. I don't see why they would nix BC but keep wi-fi.

Hooray they took all the crap out that I didnt care about.

 Yes.  It does.  The FCC stamp has "Wifi" printed on it.

 Didn't the BC rumor start with MS when they predicted that Sony would release a BC-less 40GB ps3?  I think this all stems from that.

Most likely. Of course they aren't Sony, but a competitor. They just wanted to say something to hopefully take any wind out of the news just so they could discourage anyone from picking up a less expensive PS3.

And by BC-less, it could just mean that they have removed the EE, but left in the GS.

We won't know for certain until Sony releases more specifics on the new 40gb version.