From what has been said on this bored at this point EE chip is better has a greater compatability rate than the current software emulator. However,the current software emulator is suppossed to play most of the games already, and Sony can update the software. It makes production cost for the ps3 cheaper by not including it, but I dunno whethere or not it will be real savings orjustmoney they can spend updating the software emulator. Either way though I don't think people will notice a differenceone way or another as the software emulator will probably be able to play every game the EE chip does eventually if not right outta the gate.
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