Well, guys, there's some things to consider.
The PS2 was the weakest console of last generation... Well, second weakest.. It was only stronger than the Dreamcast. The PS3 is about power, and high polygon counts, etc. Also, everyone already had a PS2, so, including the E.E. engine in the PS3, when people already had a PS2 was essentially making them buy a PS2 along with the PS3.
If someone wants to play PS2 games bad enough, they'll take out their PS2. That's partly why the PS3 doesn't do PS2 game anymore. And, about you guys saying Sony plan to use the Cell in PS4... Didn't they plan to use the E.E. in PS3? Wait a minute... they did.. :P
Sony cares about backwards compatibility. That's why people can still play PSX games. But, everyone may not have a PS1 still, each, and every PS3 plays PS1 games, so, every PS3 does have backwards compatibility... It will come back for PS2 eventually. It has to be emulated. Sony's still making money off the PS2. PS2 games may be downloadable from PSN by premium users... Maybe not.
But, if they use the Cell, it'll be to make PS3 games playable, because I'm sure a lot of people will probably just update to a PS4.
The PS3 did kinda bite the bullet for future PlayStation consoles. It made that expensive leap so that it could hold off it's own in the next generation. It was expensive when it came out, but, it wont become outdated as fast as the Wii, or 360, so, when the successors of those consoles come out (and people get pissed, because they just bought a Wii, or 360) The PS3 will still be around, will acceptable graphics, and help ensure that the PS4 is above the next generation of consoles..
Look at the Wii, it's cheap, and doesn't have the best graphics. The PS3 is the next generation Wii... except it got here in 2006...