An aricle from businessweekly.com states:
"Some hysterical commentators are predicting an "impending firestorm"; a public backlash. The fact is, it won't materialize. Why? Because backwards compatibility is No Big Deal; a lot of noise made by a vocal minority.
It was the right decision for Sony to make, and ought to have been made earlier. Sony will almost certainly do the same with future iterations of the console around the world.
In fact, the company told us it would drop hardware emulation way back in the summer of 2006. In June of last year, a report in Japanese technology magazine Ultra One Monthly stated that the firm would be removing the PS2 chipset from future revisions of the PS3 hardware once it completed development of a software-based emulator."