That's funny. So they never even bothered continuing development of the emulator to enable PS2 Classics, they just accepted the title limits on what they could release?
Sounds probable, although it wouldn't really matter. My guess is their logic was:
A. Our emulator is not 100% and we're not willing to devote resources to work on it anymore.
B. Remove use of the emulator since we're not going to advertise it anymore as we're not going to use any resources to work it. Tell people to go buy a PS2, which will make us money and we know they can play their games on, if they ain't happy and remove mention of it from the menu. Don't spend any more amount of money than required.
C. Sell, individually, PS2 games that we can get to work, digitally, and we can get the rights to resell. Bundle each game with a generic PS2 to PS3 emulator that we used in the past.
D. Literally, profit.
In this case, it doesn't seem incredibly dickish, just minorly dickish. So, still dickish, but it's not like their doing extra work to fuck people over, just the bare minimum. Which, hopefully, calms some emotions. They're not actively fucking anybody over, just, well, taking advantage of a situation.
Still being a company, but they're not EA or anything.