PS2 Emulation on the PS3 Possible?

We all know about the big stink Sony caused when it introduced its 40GB PS3 model as not having any backwards compatibility for PS2 games. Although that is rather important to me, at the time I couldn't justify spending an extra $100 for 40GB more storage space and the ability to play PS2 games. I still don't know if I could justify that cost, but at least there's now rumors going around about a downloadable PS2 emulator that Sony may provide in the future.

I have a PS2 that works perfectly well, and in months past its actually seen more action than my PS3. In fact, I have Tales of the Abyss coming in from GameFly in the next couple days. However, being able to use one console for everything Sony would be preferred. Let's hope the rumors are true - if they are, it would sure be a huge boost to 40GB PS3 owners.