Twisted Metal, a PS3 game that came out this year, featured a custom coundtrack option. And since this is an exclusive, I don't see why it would not take advantage of this feature. It makes sense, you could either:
A) Set up different song(s) for each level
B) Create a playlist on your PS3 and just play that in-game similar to how Twisted Metal did it
Just imagine - Evil Cole vs Good Cole vs Good Sackboy Cole vs Evil Sackboy Cole
Or even references of it in the arcade mode at the least for example Sackboy Kratos staring down Kratos himself. Would be hilarious.