I think it's sort of a big deal, again for a space issue.
I plug my consoles into my receiver, so's I can rock out in 5.1 stereo (where available).
With the Xbox 360 doing all the **** it does, I can probably start scrapping some of my components to free up inputs in the back of the receiver without losing any functionality at all.
Plus I still haven't passed Splinter Cell: Chaos Theory or KOTOR II, and I doubt I'll get around to doing either by Christmas.
So if I get the new system, I can clean up the old entertainment center a bit.
And come to think of it, even though I never had a PS1, I have actually purchased PS1 games to play on the PS2--a bunch of Dragon Tales and Mickey Mouse type stuff for my daughter, plus some Castlevania game she played once over at my brother's and fell in love with.