The PS3 does, however, have a "smoothing" option which will round off some of the rough edges when you're playing the PS1 (and PS2, depending upon which system you have) titles. It makes it a little nicer to look at when you're playing those old games on a big TV.

I actually keep a little CRT around for when I hook up my older systems... but for the newer stuff, you gotta keep it looking good, man!

But seriously, when you fire up one of those downloaded titles, when you press the PS button on your controller, you'll see the option for graphical smoothing there.