[quote name='The Mana Knight']No, every PS3 SKU has a 100% software emulator (no PS1 hardware needed) for the PS1 BC. It cost $0.00 to implement it since it's completely software (just write the code, no extra hardware needed).
There was never a complete PS2 software emulator. The emulator within the 80GB is ONLY for the EE (Emotion Engine CPU), while the GS and other components are still needed. The issue is (from what I hear) that 100% software emulation for PS2 games is up in the air whether it can be done on PS3 (the biggest challenges are the cell is quite difficult to work with, especially since it has multiple processors, instead of being more unified, and the GS has a really high fill rate (higher than the RSX, from what I heard)).
I edited. I meant 100% (typo).[/quote]
The PC has PS2 emulators and they're far less powered then what the PS3 is. If you want to get a PS2 emulator, you need to hand this over to RAND of Former Bleem fame. If anyone can do it, he can.