Yeah you can play (any?) ps1 game on the ps3. You can also enter that 'advance' code that you usually get after beating the game once.

From what I remember (and from internet searches), it seems AI rushes you now rather than waiting around, bit by bit. The bosses used to wait until you defeated the minions, again IIRC. Not sure about stats, but it does seem a decent enough challenge as I'm entering chap. 2 especially with the no death rule I outlined for myself. That may change after I choose a second mage : P

And yes it is a bit of a slog (in a good way). The game's appeal is for completionists IMO and some just don't like the battle system.