also, the ps2 benefited from ps1 compatibility when it launched and didn't have many good games (none actually)
I'd rather buy a $100 PS2 and a $400 PS3 than a $500 PS3 with some PS2 emulation. Also there are rumours that the PS2 is also going to see a price drop for Christmas. What major features have been lost, aside from 20GB of HDD space? The 40GB version also has wireless apparently, which the 20GB one didn't.
I might get one when God of War 3 comes out... $400 would be nice. But I think I want to play Brawl and Galaxy before anything currently on the PS3.