I just think backwards compatibility is just handy.
I'm sorry, but no matter how hard you look after your xbox, your ps2, or even your megadrive, eventually the hardware is going to fail.
Playing older games on the newer consoles, means I can hopefully make the older console last longer. (Less chance of it overheating, or the laser breaking ect.)
This is why digital backups (and emulation) are so important in my opinion.
So long as the data is still being moved around, then the games of that time can never be lost.
Sure its not 100% legal or authentic, but look at books.
Alot of books are reprinted and turned into ebooks.
If no one looked after the books, preserving the stories and history they contain, then Shakespears works could have been lost, and the English curriculum would be very, very, different! XD
(as much as some people hate him, you have to admit his work has had a lot of influence on the creative medium)