Maybe it's just Sony throwing third parties a bone: I'm sure they were less than pleased at how poorly their games sold, and thought even less of the whole "piracy" angle. This way, Sony gets them some return on their games, engenders a bit of developer goodwill, and (whether or not you're angry about it), gets older games into the hands of the relatively few people who actually own UMDs.
Do I agree with it? Not really. But I can see where Sony is coming from.
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