You'd be far better served with a modded Xbox. It costs about 1/6 of what a PS3 costs, and PCE emulation is already very advanced. It plays ISOs from the HD.
Compatibility is just so-so, but the same will be true with the PS3 for several years, most likely.
Plus, owning a beat-up Xbox you bought from some dude for $50 because needed weed money make you feel far less like a complete tool than owning a $600 POS3 does.
I was pricing a possible trip to the UK, and France for next year, and the lowball prices I'm looking at for plane ticket across the Atlantic, and 7 nights in a hotel are in the area if $1200. The price of two PS3s. At that point it really hit me just how bad of a deal the PS3 is. I'm going to Europe, and never owning a PS3, is basically what I decided.
At least with the $600 Neo Geo you had great games to play.