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Seems even the current PS2 can't even play some PS2 games. Weird.
I'm disappointed (though not entirely surprised) about the PS3 though. The PS2 contains the PS1 CPU, that's how they managed such a high backwards-compatibility level initially. But the PS3 is completely new.
That said, there was compatability issues with a number of PS1 games when the PS2 was launched - but they were mostly Japanese titles which weren't available here anyway.
Still, I think Sony could get away with eliminating PS1 compatability entirely. I loved the idea when I got my PS2, but have to admit I've rarely gone back to PS1 games. In fact the only one I still have is the original MGS in a collectors edition box set. Not entirely convinced it's necessary on the PS3.
Seems even the current PS2 can't even play some PS2 games. Weird.