I play old games on my 360, though i do leave my xbox here for the few titles (hitman and driver) that are not BC, i would be happy if it was fixed, they added mercinaries this summer so i can hope for one more update

So in other words it is not a big deal because:

1. There are no gamers who didn't own a PS2 last generation
2. There are no new gamers this generation
3. The PS2 was indestructable and will never fail
4. No Gamers will want to trade in their PS2 to get a decent discount on the PS3
5. Every gamer has an infinite ammount of space under their TV
6. Backwards compatibility is not a selling feature to parrents because they're not interested in a massive library of low cost games for their children
7. Every gamers has played every interesting game for the PS2

(If you didn't get it, none of those are true)

Now, the reason I think removing Backwards Compatibility is a huge mistake is that (simply due to the number of systems released) there are probably 5 to 10 Million PS2 systems that are going to fail in a year for the next several years and when people decide to replace these systems they're going to look into their options. A large portion of these gamers will not want to abandon their current library of games and if they have to buy a PS2 to play them regardless of the next-generation system they choose to buy it makes it far easier to transition from the Playstation brand.

Basically, I wouldn't be surprised if 50% to 75% of PS2 owners bought a PS2 (instead of the competition) because they needed to replace their Playstation and they decided they "Might Aswell" pay the extra $75 to $100 and get a PS2 ...

I said this in another thread and I will say it here. Backwards Compatibility is not important now because Sony says that isn't. Sadly a good deal of Sony supporters seem to be incapable of practicing independent thought. Whatever Sony says this week is what they "think" and in two months, when Sony says the opposite, they will "think" the opposite. I am really tired of it to be honest with you all. It reminds me of politics, how something can be terrible if a one party says or does it but soon as the situation occurs within the opposing political party nothing is wrong with it.

EDIT: If six months from now, Sony manages to over come the Graphics Synthesizer emulation issues, the PS2's GS has over twice the bandwith speed of the The PS3's RSX, and gets the 40GB units to say 85% to 90% PS2 compatibility, I can guarantee you that majority of Sony fans that "think" that BC is so unimportant will be talking about how great BC is again. 

I would find it funny if people complained about it and then in a later firmware update, they added software BC.

The only person I know IRL that owns a PS3, bought it as a replacement for their broken PS2.... It was also the reason I was planning on buying one until I found out it was going to be $600, then I decided to just fix it myself.

I'd rather have seen them remove the WiFi than the BC, at least that's something you can add on.

Ditto.  I wonder if they could.  I thought it was simply a matter of adding the software emulation to the console, but I wonder if there isn't something more to it...

Does anyone know how the 360 emulates the xbox?  Is it all software, or is there some original xbox parts in there?

Think about the people who had to trade in their PS2 just to save some cash on the PS3. Poor folks...

I just keep thinking of Little Timmy finally getting mommy to buy him a PS3 and after he finishes his first PS3 game, he tries to play a PS2 game and cries because it can't.

Poor Little Timmy.

Which is why it's a waste of time trying to argue with certain people.