The fact is that no one would ever buy a "Playstation Classic".
It's funny how some consoles or eras of gaming have aged better than others. I think the best Dreamcast and N64 games hold up pretty well despite being from roughly the same early 3D era. Maybe it's just the old '95% of everything is crap' rule.
At the risk of insulting some people's nostalgia, I never thought the PS1 looked good. I was in my late teens at the time and didn't have any consoles, but I remember seeing the commercials on TV. Problem is, the PS1 could theoretically do 3D, but it didn't really do it very well, so a lot of games would do 15fps in order to put more graphics on the screen. But they still didn't look very good, and even back then I could tell that 15fps wasn't really enough to play a game.
It is true that it looked better at the time than it does now, but even at the time a lot of us were underwhelmed.