I hate that I feel like I am always responding to your post negatively so please don't think that but I read the original article earlier today (kudos to IGN for basically creating an article on another sites story) and I have a hard time believing this came from any source and was just made up. This is the part I found fishy.
Our information suggests that the same internal emulator strategy is planned for PlayStation 4, and we understand that Sony is actively pursuing the ability for older titles to run without the blurry upscaling seen on PS3, suggesting that native HD resolutions are being targeted. Assuming this intention carries through to final code, we'll be seeing an effect similar to the resolution scaling seen on unofficial PC emulation of Sony's consoles, as well as a great many of the "HD remasters" we saw on PS3 - where original assets were rendered at a higher resolution, often without any actual remastering at all.
If someone with more technical knowledge than I could explain how a game that wasn't created in HD resolutions will magically be transported to HD resolutions with the same art resources I would love to hear it. If a game is being remastered to use HD visuals then it essentially not being emulated any longer.
Maybe I'm just not up on the tech but upscalling is the process where the system analyzes a group of pixels and guesses what should be there to created the higher resolutions. So the more pixels there are the better it can guess what should be there. PS1 and PS2 games are not going to have anywhere near the pixels for this to work and be called HD. Again this all based on what I thought I know, I would love for someone with more tech savy like DB to point out why I am wrong.
Add this to the fact that:
A. it's a direct competitor of their cloud streaming service
B. The original article comes from Eurogamer
I have a hard time buying it. Personally there are a lot of games I would love to see remastered and hope I am wrong but this seems like a slow news day kind of story.