While reading GAF about the PS2 hardware being pulled, somebody pointed to this ;
Just a quick word of warning for anybody who already owns an xbox360 or a PS3, the first time you start up the game and get the 'basch teaching you controls' section,
you'll think "jesus christ this looks terrible". Stick with it, after a couple of hours you'll be used to super-low res-o-vision and it doesn't really detract from the game.
unless of course your a complete git like me and are able to play it in high-def via a ps3 development kit and some really unstable firmware.
Then a little further down he says this ;
Nope, I took these screenies myself - will post a few more once I've fed the wee man and got him to sleep. They are writing a proper PSone and PS2 emulator
inside of the firmware, but the first step they've taken is to use the existing PSone and PS2 chipsets in the launch units and just off-load the rendering to the PS3,
which can then spruce it up with AA and render in 1080p (or 720p depending on your setup). It's going to be a while off yet.
So don't be alll boo-hooing about the EE&ES being removed from here on for the PAL launch as it's all being done for the right reasons.