Was in the same boat you are in last December - had a Gamecube, deciding whether to get a PS3 or something else. Opted for a PS2 and bought a bunch of games I never got to play. For me, it was worth it. Games are cheap and there are a lot of them. Not sure about you, but I'm not interested in paying $70.00 for a game for a new system that will be marked down to $20.00 in a year's time. Patience has its rewards.
As for your questions:
1. Slimline. You will get a one year warranty with a new slimline.
2. Some games don't work but most do. Before you buy a PS1 game, look it up online to see if it works on the PS2. Don't forget you'll need a PS1 memory card if you want to save your PS1 game on your PS2.
3. Can't help you - I imagine the PS2 online community is pretty small right about now.
4. Nothing wrong with the graphics - what you might lose to the Gamecube, you more than make up for with a better controller - more buttons helps sometimes.
The only real problem with the Slim is that finding a multi-tap is difficult. When you look for multi-taps make sure it works with your PS2 model.
What I would recommend is that you don't go nutzo when you start buying PS2 games - just buy good games and play the piss out of them. There are a lot of PS2 games and a lot of them are just blah - they may just cost $5.00 but that's money you can use towards better games.
A couple games I wanted but where not available on the Gamecube that I got right away and did not regret getting are:
FlatOut 1 & 2 - great racing game, great mini games, best demolition derby ever made.
Katamacy Damacy & We Love Katamari - short but oh so sweet and fun.
Mister Mosquito - you play as a mosquito, again short but pretty unique and fun.
Activision Anthology - with this one disc, you've got an Atari 2600 and most of its best games.
There are plenty of other great PS2 games and for the price of a PS3, extra controller and just one game, you can probaby get yourself a PS2, extra controller and about 25 great games.
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