I don't really understand why SONY would not just add some filtering to PS1/PS2 games. Maybe it's an issue with keeping compatibility high. Does anyone know if the PS3 has PS1/PS2 hardware onboard or will it use emulation to play old games? Also, I would not be surprised if SONY added it later in some sort of firmware update.
ALSO, could someone clarify how the PS3 might be able to enhance PS2 games other than displaying at a high resolution?