Indeed. The reason we got him a PS2 game (Spongebob: Atlantis Squarepantis) in the first place was because of the bigger catalog and to sort of point out to his parents that they didn't necessarily have to shell out $60 a game when there were plenty of fun PS2 titles for half or less that price. This is the kid's first game console anyway so he would have been none the wiser. However, on his last visit to our house he even said he liked our PS2 better than his own PS3, so that cat's out of the bag.
I can tell you that this makes it considerably less likely that I'll be buying a PS3 in the foreseeable future.