Yep, even Krazy Ken mentioned the possibility of a pro-AV grade PS3 that fits in a home theater shelf unit. The problem is with all game hardware, the goal is to streamline the manufacturing as much as possible. The big benefit to keeping PS2 hardware onboard is that Sony and 3rd parties could sell their whole back PS2 catalog on PSN. It's not as attractive if only the early adopters and Pro-AV people can buy them.
I think this can still be a lucrative revenue stream for Sony even if they are not dicks about it and still let us play it if we have it on disk. People will still buy PS2 titles through PSN, just as they do now with other titles available on disk.
I think the convenience of the digital download would even provide good competition against Gamestop's ratty old PS2 section. After all there are no more new copies of these games to buy. The industries ire towards the used game market has more to do with a used copy sitting on a shelf right next to a new release, for $5 cheaper.
And it's not like they didn't already have the manufacturing infrastructure in place to make these PS3's. If they charge $200 more for them, and sell them at profit, who's going to get hurt? Nobody, that's who.
PS I miss Krazy Ken
I believe 8-4 Play tested out the UMD to digital program on the PSP and it does indeed uniquely identify one UMD from another. So it does work the way they state it works.
I think you might be Goin' Ape Spit, Toki. I'm up to date on my 8-4 Plays and they were scratchin' their heads about how this was supposed to be accomplished.
If I'm wrong, link me the article, please.
But if so then it just makes even less sense to charge so much for this service...