It stretches the picture if you've set it to 16:9 and the game is for 4:3.
Not having problems with warping and glaringly exposing hidden by blockiness faults.

just to answer previous posts, as far as i can remember the survey sony carried out asked what percentage used their ps3 to primarily play ps3 games and the got 80-90%. what they didn't ask was how many people they surveyed actually play any ps2 games on their ps3.

on topic though i think the main problem people have with BC is that it was an original feature and they expect features to be added to new products and not taken away, so for me i think it's a pre-owned 60gig when i can get round to buying one

I dont care for BC because I cant get hold of ICO or Shadow of the collisus anyway (theyre out of stock everywhere).

PS2 had the best games last gen so yes it does matter.

so then get a ps2.
Most ps2 games are really cheap now compared to when they were released. Well, when BC was standard, Sony was basically selling you a ps2 with every ps3. Now you have the option.

Well, I had 30+ PS2 games. And right before I bought my PS3 my PS2 died on me. So I couldn't can't play those games. I would have been a lot happier if they added BC. So instead I sold most of them and bought them for Gamecube and Xbox, so now I can play them on my Xbox 360 and my Wii.

In other words. I would have upgraded sooner to the PS3 if it had Backwards compatibility.

Edited: Fixed some grammatical mistakes

Or you could have just bought another ps2, keeping the value of all the games you had, because you surely lost a lot of the value by selling them.

Why should I support Sony for taling something out f the PS3 that should be there? Microsoft and Nintendo have it there. Why not Sony? Because I Nintendo and Microsoft had it. I supported them by buying as many  of the games as I could new.

By not including BC in the PS3, Sony continues to rip off its consumers. Basically, if you want to play PS2 games, you're forced to shell out an extra $100. Neither MS nor Nintendo do that.

and then buy another one.... and another one.... then a bunch of second hand ones.....