A 20gig PS3 still has PS1 upscaling... I'll assume that the 80s do as well unless they only removed it from the 80s, which wouldn't make sense as its already built into the ps emulator.
As for the issues with not getting any HD hookups included. It's not that big a deal, the hdmi cable is going to cost you less than $50, and most people with a decent hdtv and a video card made after 2005 will probably already have that hdmi cable sitting around for video output. When i got my PS3 I saw the hookups and figgured. 'great, I'll leave these at my friends in case I ever take it over', grabbed a spare hdmi cable, removed the optic cable from my ps2, and was good to. It's not a huge deal really.
As for the removed backwards compatibility issue, it's a loss, but it's not the end of the world... considering the price and availability of a PS2slim, it's not a huge dent. Even with only having PS1 BC, its still a better library than the original xbox had, and I personally would rather not burn out a laser on games that i can just as easily play on my PS2 or PS2slim.