Funny move. I didn't expect they would drop the back compat after the big deal they made out the 'crippled' 360 implementation.
Shows what competition can do.
Anyway, yay for the lower price! I couldn't care less for the card reader or USB ports...
We don´t know if the BC was dropped, all we know is that a new PS3 was introduced that doesn´t support BC.
This is called a choice and afaik lots of people made a great fuss about Microsoft giving people lots of choices. The most important thing about the new 40GB PS3 is that is´s still the same PS3 platform so developers does not have to worry about the harddrive not being there.