If they're selling it at cost or at a loss (I don't know if they are) as a value-add to the PS5 then they wouldn't want people buying it just to play emulators.
As long as retro sales exceed the cost to lock the device down you will see stuff like this. I recall one time paying for FF7 which I played on PS3/PSP. That game alone probably makes it worth it.
Hacked PSP was a great time to be a gamer. Played through all the greats I missed like Harvest Moon, a bunch of Final Fantasy, some mega man. Nostalgia overload thinking about it.
I would love to have Tekken 3 on the PS 5 just because it is convenient. Instead they only offer Tekken 2, which is only available via the PSN subscription.
I wouldn’t call that “fixed in a decent way.” The subsidy of the hardware is a benefit for many consumers who choose game consoles.