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There are advantages to both...
Phil if you want to play PS2 games you'll still need a PS2 (or the more obscure previous gen PS3 that did play PS2 games). I think this is a huge blunder on Sony's part not to have the PS3 slim play PS2 games. I know it costs money but that's an investment that could make the PS3 much more desirable to a wider audience. Huge selection of inexpensive fun games.
(Incomplete) comparison chart is posted here:http://www.joystiq.com/2009/08/18/tabulator-ps3-slim-and-phat-sized-up/