Well, I finally broke down and pre-ordered a PS3 80gig Metal Gear Solid 4 edition releasing in June. It was only $100 more than the current prices for a 40 gig model, and the 80 gig is supposed to be fully backwards compatible with PS2 games. While I don't do much game playing with my PS2 and probably won't with the new one, I figured for a hundred bucks more I might just as well get the 80. Now I'll have to start paying attention to Blu-ray releases.

For anyone interested in this check out Frys

I've heard the 80GB is actually closer to 75%-80% backwards compatible due to it being software based backwards compatibility.  Even the earlier 60GB models weren't 100%.  If that matters to you, you might want to look into it a little more.

I figured for $100 more, I could just go down to GameStop and pick up a re-furbished PS2 for 100% backwards compatibility.  Fortunately our kids are still young, so we've always been a Nintendo family and PS2 compatibility isn't an issue.