[quote name='Rei no Otaku']
As for the PS1 games, no

ing excuse at all. A library that would put Nintendo's virtual console to shame, and it sits there untapped.[/QUOTE]Let me put it this way:
Square will never release anything on PSN because they said themselves they don't believe in digital distribution. The rather remake their games all over the place, then charge FULL price for it to make as much as they can off of it. An example would be porting FFVII to PSP and charging $39.99 (PSP has a bigger userbase than PS3, and they could get away charging full price for it).
For many other 3rd parties, $5.99 is just too cheap for them. How many third party N64 games have appeared on Virtual Console?? None, because 3D games are more difficult to emulate, cost more money (although not as big as developing a game), and they would probably want to charge more for it. Emulating SNES, Genesis, NES, etc. games are so easy and you wouldn't have to sell a thing to make a profit (plus, you better bet devs are having fun charging $4-$8 for old games on VC).
Let me just put it this way, PS1 games AREN'T selling too good on PSN (in the U.S. especially). Many of those games were greatest hits if they were popular. You think Sony really cares about bothering about other games if no one is buying them (and they aren't as easy to emulate compared 2D 8-16 bit games). Also, it's not just a matter of doing a straight emulation, Sony has to reconfigure the game to work on BOTH PSP AND PS3. On the PSP, they gotta think of a control scheme that works, along with adding settings to the game. And it's not just doing the emulation, they gotta play through the game making sure there are NO bugs and runs efficiently. If Sony was just putting PS1 games to be played on PS3 (not PSP), their job might be easier.
And even if Sony puts up more PS1 games, I guarantee people will still be bitching, because I almost guarantee they aren't putting many (or if at all) niche games like Tomba, Wild Arms 2, etc. They'd probably put stuff like Syphon Filter 2, Crash Bandicoot 2, Sypro The Dragon, Cool Boarders 2, and a bunch of other games that don't hold up too well now (I could see them putting up Twisted Metal 2, which some may want).
However, if Sony ever does put more PS1 games up, it won't be until some sort of pre-paid cards are out.
If you want to complain to Sony, doing it here will not help; however, doing at
this place will. I already contacted them myself before and told them my complaints. They DO listen.
As for other demos, blame third parties for not having demos up. As for 1st party demos, the Lair developers admitted they were very busy trying to finish up the game and there would be no demo until they finish the game (there's an old Lair demo from the Consumer Electronic Show, but it's buggy and if Sony were to release it, Lair would lose more potential sales). Ratchet & Clank, Folklore, etc. will not come until near release. Not just SCE does this, MS does this with their demos too (Blue Dragon demo didn't come until just before a month before release, same with N3, etc. Some demos came after, like Viva Pinata. Sony and MS are no different with their disc based game demos, it's just that MS has the 3rd party support while Sony does not).