Having said that, I very much agree that people hold onto older games way too much, and it makes me wonder how much of that is a product of nostalgia.
It is absolutely nostalgia. "The good old days" syndrome is everywhere: sports (back in the day, guys played with broken limbs and got their bell rung all the time); music (all a bunch of one-hit wonders nowadays); movies (it's all special effects these days); gas (my DeSoto burned 3 gallons per mile and it only cost 3 bucks; boy did it make a sweet sound); school ( I had to walk 8 miles to and back; snow, sleet, rain, you name it! )
BUT!
Sports: look at all the old guys who can't walk, have arthritis, suffer from dementia/alzheimer, shoot themselves from PCS.
Music: we all know Elvis, Dion and the Belmonts, Patsy Cline. Look at all the no-names in Dick Clark's collection.
Movies: they had 2-3 big releases per year;
Gas: do we really need to cover how our reliance on oil is not good? Nothing more pleasant than an a**hole with a cherrybomb muffler when enjoying a cold one outside.
School: oh yeah, would have loved to have my fingers whipped with a ruler because I'm a lefty (the devil's hand).
I bought some PS1 classics on my PS3 , and man some of them were just... gahhhh. I have nostalgia for some games (Baseball Star, Tecmo Super Bowl, TMNT I&II, NHL 94, Super Mario, Mike Tyson's Punchout, original FF, Legend of Zelda). Sure, they're fun for a laugh for 30 minutes, but hey, the world moves on.