Yeah and like FFX, GoW 1 and 2 are already entirely in 3D, again, unlike FF7.
And if you take yer emulator idea as an example, the games that turn out the best on emulators, are those that are almost entirely in 3D. Games that use lots of sprites and 2D backdrops tend to end up looking pretty bad.
Regardless, emulators are really just a fall-back for games that haven't been properly ported to a better platform. A game that runs natively on any given platform will almost always perform better. Also, Sony has demonstrated pretty clearly that they either do not have the necessary skills to do a PS2 emulator on PS3, or that they do not wish to spend money on this.
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