My own experience with upscaling PS1 games on the PS3 slim is that the PS3 does an alright job, but it's only slightly better than playing them on my PS2 and using the upscaling logic in my HD display. To be fair, I DID shop around and select a display with strong performance in that area as a buying point, but still...
Honestly though, I still get the best PS1 graphics from PC emulators that render the game at the display resolution rather than at the original and upscale. The textures look a little off but there's hardly any pixellation. I don't know about PS2 emulators though.
Persona 3 (and 4) are very high on my RPG-playing list. My friend Dan is nearly obsessed with this game, and probably won't rest until I can finally properly geek out about this game with him.
I will most likely play the original PS2 version before the PSP one. Nothing against the PSP version, I just like to play classics over remakes first.
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Honestly though, I still get the best PS1 graphics from PC emulators that render the game at the display resolution rather than at the original and upscale. The textures look a little off but there's hardly any pixellation. I don't know about PS2 emulators though.
I will most likely play the original PS2 version before the PSP one. Nothing against the PSP version, I just like to play classics over remakes first.