I read this earlier today, no features are taken out. Its still possible to play PSX and PS2 games, but Sony have removed the PS2 CPU/raster chip that the japanese and american version has. Instead of using real PS2 hardware (atleast parts of it) all will be done via software/emulation instead, like on 360. Its still not known how many PSX and PS2 games that will work or not work.

Personaly i dont care. When i buy a PS3 its not because of playing PS2 games. Since i got my PS2 in 2001 i've used maybe 20 PSX games on it, so for me this is no problem. I also read something about a new shell for the PS3. As the article says, this might lead to a faster pricedrop, which is good for me