Personally, I agree that Backwards Compatibility is important. If anything it is one of the most important things we can put in a console, since that's our history we're preserving there. Let's put this into perspective here: in my house, we have a device. this device is a combination VCR and DVD player. With this device, I can watch just about any film released from the early '70s to today, provided they're on VHS or DVD. That's over 40 years' worth of media, usable right there at my fingertips. Now let's compare this to video game consoles, which have exclusives, and other limiting factors. The Xbox 360 can play games released from 2001 to now. Acceptable, since the Xbox's library only extends that far back. The PS3, before it was cut down, had backwards compatibility with every game from 1994 to now, totaling to approx. 19 years. Not too shabby, since its library extended back that far. Of course, after the system was redesigned, it could only play games released at most 7 years ago. That's less than half of its original library, and less than a quarter of my DVD/VCR combo's backlog. By sacrificing that backwards compatibility, we sacrifice decades of history. And to those who say to keep the old systems around: we don't live in a vacuum, where these systems don't break down with time. I take care of my old systems, and even then they still degrade with time. Batteries go dead, wires break, and shells crack. Our media players and storage are far from impervious to time. Not to mention finding parts to repair these old systems is a real pain in the ass, and I know from experience.
Of course, Backwards compatibility has its drawbacks: it's costly, and then there's the point of people just playing their own games without the manufacturer profiting much from it: however, that leaves out those who bought the system so they could play the company's backlog. I've done this several times: I didn't have a PS1, so I used the PS2 to play any and all PS1 games I wanted, as well as the PS2 games. I'd only had an Xbox for a short time before it broke, so I missed quite a few classics. To play those I went and bought an XBox 360, with which I've played the Halos, KOTORs, and the other games I wanted to play before but didn't have the chance. I did this again this year with a WiiU, so I could catch up on the Wii games I missed while I'm waiting for it to get up to gear with its own lineup. In other words, Backwards Compatibility sold me those systems. It may be costly, but it sells systems. And before anyone says "That's what digital distribution solves!", no, it does not. We still have a sizable population of individuals who have too low of an income to get a high-speed internet connection, because those things are not in any way cheap. By leaving those people out, you're driving away customers who would gladly drop money on your system.