Well yeah, one problem it faces is that most people acknowledge that early 3D has aged a lot worse than anything from the 2D era.
Even if you're upscaling and uprendering etc. it tends to look rather bad and that often gets combined with poor framerates. Nobody quite knew how to do 3D controls back then either (look at the original Tomb Raider) so an awful lot of games have control setups that just feel awkward or alien to players today.
Outside of Japan it was also an era where we saw very few 2D games, due to policy (not wanting to look like the older 16-bit systems) or whatever else, so the selection of 2D games, which could have been of exceptional quality, is instead very limited too.
A lot of memorable titles were 3rd party, from studios that are no longer around or where the IP rights to those games are kinda in limbo, while others have already had HD remakes (Crash, Spryo soon) which means even the better 3D games of the era aren't that interesting anymore. There's not even much nostalgic value in things like the original Gran Turismo outside of maybe the licensed soundtrack, and it tends to be the soundtrack that gets cut on these re-released systems.
So it will be kinda interesting to see the reception to this. The bonafide timeless classics of things like the NES and SNES just don't exist in the same way.
The NES / SNES ones did set the bar really, really low in terms of quality of product, so maybe that's where Sony can win here. The overall quality on the NES / SNES ones didn't matter so much to people, I'm guessing for similar reasons to why it's difficult to convince people of genuine improvements we make in MAME; most people are just playing them for 5-10 minutes at a time as a novelty / gimmick and don't appear to care that the versions they're using have glaring errors and are generally a bit garbage. That style of gameplay is less suited to longer games, for which the Playstation was more known, so it's more important that the actual hardware (and emulation) is of a better quality. That might explain the higher price point.
With the PS2 library instead there's a massive collection of games that still hold up pretty well as there was just about the right balance of system power and creativity to actually pull off high quality games in 3D, but as we've seen, emulation of the PS2 is notoriously difficult, there are problems with the emulators on the PC, so short of relaunching the original hardware there (much as was in the first gen PS3s) I guess we're not going to see a PS2 mini any time soon. I was playing the original Tak game on an actual PS2 earlier this week and it holds up so well it puts almost my entire PS3/4 collection to shame.