[quote name='eastx']What you're asking for is no different than them just letting you download pirated versions of those PSOne games, because there would be absolutely nothing to stop you from installing an original PSOne game to every PSP that you run across. As another poster said, the only way they could implement your idea would be to require you to trade the disc in, which just isn't going to happen.
You got a very similar response from someone else because your idea isn't completely logical and we're explaining the logic to you.[/QUOTE]
Not only that, but why on Earth would they want to compete with themselves? They have a released a number of a PS1 games in the PSN store. Yes, it's a very, very small portion of the entire library, but nonetheless, they want you buying it again if you want to play it on the PSP.
Anyway, as far as the prices of these titles go, it's simply logical that the prices of physical copies will go down once they become available via digital download. You are cutting into the potential consumer base. I know there have been plenty of "rare" games I have considered paying way too much for, just because I really, really wanted to play them. I never did, but I know plenty of people do. Once something like this happens, all of those people will no longer even consider paying the high prices for the physical copies. Now, you'll only have the collectors.