I have been a major supporter of the "Fix my PS3" campaign going on, be it upscaling issues, customs backgrounds, or the backwards compatibility issue surrounding crappy looking 480I games.
Now I did a butt load of testing myself when I first heard of the issue. I tried a side by side test with my sons PS2 and my PS3, both using component cables, both on the same display.
The results sucked. The PS2 did indeed offer a jaggie free, or less jaggie picture. From all the technical info available it is an issue with Anti-Aisling, that is affected when a non Progressive signal is played on the PS3. Does this suck? Hell ya. Do we need to keep beating a dead horse about it? Hell NO!!!!
Sony is aware of the issue, they have said that they will be making a firmware adjustment to correct the issue "in the future" When that will be, well your guess is as good as mine. I personally expect it to be around the Euro launch, it would make sense at least.
Sony also has claimed they will be making a software emulator in the future and dropping the PS2 emotion engine to cut costs. When this will be again is up in the air.
I wish people here, and anywhere on the net for that matter, would just do a little searching and find that there are about 50 threads on any forum about this issue. But then again, that wont get any trolls post count any higher.