Hello.
Real Hardware is really the "best" Feeling.
If you have the Storage/Room/Space,then please.
Well technically speaking, the earlier PS3 PHAT models which were backwards compatible with the PS2 (disks), had real PS2 hardware in them, so it's real hardware if we take it like that.
Later models that still could read disks had only the PS2 CPU in them and emulated the GPU, and the ones that didn't read disks and played only the PSN classics used full emulation. As for PS1, every PS3 supports PS1 disks.
So for convenience, I'd suggest the PS3, just so you don't have to deal with annoying controller cables and don't have to hassle with the very limited save game storage...with the PS3 HDD you have like unlimited storage for your PS1/2 games...and one last thing is the PS3 is compatible with both new and old TVs, so if you have only a new HD TV, you don't have to go out and search for an older TV to play your original PS2/1.
While I agree with you, that the actual hardware is the real deal, I myself have the PS2, but for convenience I use my PS3 for all the PS1/2/3 games.
Now quoting the OP, $150 isn't bad for what you got there, pretty good deal. I don't know why, but here, where I live, people are basically giving PS3 away....there are listings for as low as $40-$50 for fully functional, great condition PS3s...I don't know...maybe people just don't know what they're selling and want to make a quick buck from them....I bought my PS3 with an extra controller, the Move set with camera and 6 extra games with $90. The seller said that it was his son's console and he doesn't use it anymore, so he's selling it because it's just collecting dust....I was more than happy to get rid of it for him.