I am sorely disappointed by this news. I have just spent the last few days (the network was down for maintenance for 2 of them) hoping to get my playtation titles working on my Sony Xperia S. I am not a child, I have no use of a Vita but to be able to play PS1 games on my 40" Sony Bravia tv with one of my ps3 controllers whilst on short stys at my parents house would have been amazing. I was even going to purchase the live dock to make this happen. Now I am scratching the livedock off my list of possible birthday presents and will be using an emulator on my Xperia S to play all the PS1 games I own. I will not be buying a Vita however I was never going to purchase a vita until they were within my price range.
I have owned every playstion up to the ps3 60gb fat as well as owning countless sony TVs, DVD players, video players, walkmans, discmans, mini discmans, car stereos, hifi units and radios. I am disappointed by this move as it is another prime example of sony's great hardware being let down by poor decisions or supporting software. The worst thing about all this is that as a brand-loyal Sony customer I will continue to get shafted in the hope that you come to your senses in the future and increase the connectivity options between my TV, PS3, Sony Xperia S and (when I have kids - Sony Tablet P).