I think that this is a good move by Sony. The system has been around since 2000 and has sold extremely well. With PS4 on the horizon, its time to retire this system. Now the efforts can be pushed more into the last year of PS3 and into the Vita and Mobile platforms.
I remember when I bought my PS2 all those years ago. I had that, an N64 and a Dreamcast all at the same time. Those were the good times in video game history. I pretty much bought my PS2 to play Resident Evil, Final Fantasy and Devil May Cry games. Oh yeah, I forgot about Syphon Filter and Crash Bandicoot too.
With more than 150M total units sold over its life, this device helped solidify Sony's place as a legitimate video game company.