The PS2 is probably the best system of all time.
Several classic titles that hold up well today, most genres were represented well. You had your murder sims, your loli rape sims, your dancing game titles, your overwrought plot titles, etc. It had it all and in a quantity that could keep you occupied for a while if your subgenre was all that you wanted. It was also a full realization of 3D gaming where the graphics weren't outright offensive to look at (Saturn), blocky and/or jaggy (PlayStation), or blurry as fuck (Nintendo 64). (Yeah, I left out the Dreamcast but its time was cut too short) Things tended to look like things. The technology was the first that allowed for wide open places to do shit in.
The PS3 had a lot of good ideas but ruined by the high price. Any amends to gain marketshare is a day late and a dollar short at best, absolutely horrendous and at the worst. It has some good things going for it (Bluray player, PS1 to PSP connectivity) but it has some things that make it terrible. If they threw in PS2 compatibility again and dropped the price another $100, I'd bite. I don't give a shit about MAG or Killzone 2 but the PS2 BC and the Bluray player with the promise of a couple things worth playing on the PS3 would make it worth my while.
While Activision's statement might be considered an empty threat, the fact that they're even being made is a sign that Sony is dead last without much hope of recovering. Sony isn't in a financial position to make dramatic changes to the PS3 to improve the situation; so their only choice now is to take the beatings. Fortunately Sfags are taking up the cause and are hoping to boycott Activision. I'm sure the 500-1000 fewer copies of Modern Warfare 2 sold will make Activision eat their words.