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Sure, emulation is a "siperly slope", but this is an issue of the companies and consoles, as you said. Homebrew is out of the question, unless it's supported by the company, which none of them do.
Now that that's out of the way, all signs point to the PS3 only being backward compatible with the PS2, not PS1. It's not "if we're not going to limit backwards compabillity to the physical carts/CDs", it's a simple matter that whether it's on a CD or Cart or not, it's still considered backward compatability. I thought my logic in the post two of mine above was very logical, and there was no sane way to refute it.... and I seem to be right. Keep your story straight.
So I will reitterate my opinion (backed up by the facts) one more time. Sony has been the only console to handle backward compatability well in the past, but that is over. Nintendo will have the ultimate in backwards compatability.
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