The problem is, the PS3 has MANY problems. None of which is backwards compatibility. The two overlining problems is price and games. The price is too high, and the games aren't impressive yet. If you drop the price but then remove the PS backwards compatibility, what's left to do with your PS3? Watch a blu-ray movie? Play 4 PS3 game?
Until they address both issues, which is dropping the price without dropping features, and making the same quality of games that are fun as PS1 and PS2 games got, they'd be set.
If they were Nintendo, they wouldn't have this problem, but considering Sony almost entirely relies on third party support, and third parties don't give a damn about the PS3 right now ... they're screwed and they're gonna remain screwed for a long while.
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