Hey! Hey, smell that? You smell it?
It smells like bullshit.
It's been discussed by blocking used games would be a horrible move in another thread, except they were discussing things about the 360, but whatever.
Better graphics is not a good enough incentive to get people to ditch their still-pretty-cool PS3.
No backwards compatibility? Horrible move, if it's true. PS2 could play PS1 games. Early PS3 could play PS2 games. So it doesn't add up.
Active internet connection in order to play? Dick move. Not everyone who owns a PS3 has an internet connection at home, believe it or not. Hence why they get a PS3 (Or a Wii) instead of a 360.
Registration fee for used games? Another dick move. As if online passes weren't frowned upon enough. Only a handful of games can get away with that.
PSN download games? Horrible, HORRIBLE idea. We live in an era of instant gratification. The fact that I have to wait a couple of minutes to find a match online is "excruciating" enough, but whatever, it's just a couple of minutes. If I change my mind, I just need to pop out the disc, insert another disc and in less than 2 minutes I could be playing a different game. But having to wait minutes--nay, hours to play a game is a horrible proposal (Not everyone has lighting-fast internet).
And finally, the price. Oh, Maker, the price. If the PS3 was around $600 when it first came out, this one should run at around...$1000? And if those rumors are true, it doesn't seem like this PS4 has enough features to outsell the PS3 yet.
This sounds pretty scary and I seriously wish its just a rumor. Sure seems like it, but hey, who knows?