Just as a side note on BC for the PS3. I cant find it but i listened to a podcast where they pointed out that the BC slide from the KK press conference specifically mentions that games must conform to the PS2 TRC (?). Which is to say that the games need to have been coded 'by the book' using the SDK. In the podcast they seemed to feel that some of the better games may be doing something that dont conform to the TRC in order to squeeze out more performance out of the PS2. They surmized that this would make, according to developers they spoke to, quite a few existing PS2 titles incompatible with the BC strategy on the PS3. I'll try and see if i can find the slide they were referring to but i thought that was interesting.
EDIT: Here it is:
http://www.watch.impress.co.jp/game/docs/20060315/psm09.jpg
Very interesting to see if there are in fact PS2 games that wont be BC and which games those are, they could end up being the best ones graphically.