I think Sony is looking for a way to ruin their progress with the PS4 so far this gen. Arrogant and stupid Sony is coming back where they assume that the masses will buy whatever Playstation device they will sell. I see a lot of positive feedback from GAF with this, but outside of here and the scope of the hardcore gamers, I doubt anyone would drop another $400 just to upgrade their console this early on this generation of consoles.
The selling model that seems so successful in the mobile space would not work here for various reason that have been discussed to death. Consoles are not tablets or smartphones, and they will never be as such.
Also the argument that they want to keep up with technological advances doesn't make sense. They will never be able to take advantage of the new hardware if games are designed around the limitations of previous hardware. Dropping the old PS4 hardware support would probably the stupidest thing to do, and I don't think Sony would ever do that.
Why is it that people keep forgetting that PC's do this already just fine? It's not that hard for devs to make games take advantage of better hardware. Seeing all these silly posts just condemning the idea for no legit/logical reason is just baffling.
It's also funny everyone seems to keep forgetting that there are tons of ps4 games that run like poop now. That won't automatically change because new hardware comes out.