So let's look at the lineup...
Battle Arena Toshinden - I'm thinking maybe adding BAT2 or BAT2 Plus might've been a better choice?
Cool Boarders 2 - Okay sure.
Destruction Derby - Destruction Derby 2 might have been a better choice
Final Fantasy VII - This is a no-brainer
Grand Theft Auto - Meh.
Intelligent Qube - Good choice
Jumping Flash - Another good choice, one of my favorite games
Metal Gear Solid - See FFVII above
Mr Driller - Not a bad choice but I think maybe Pac-Man World for more familiarity
Oddworld: Abe's Oddysee - Good choice, one I'll be able to enjoy because I thought I owned this but apparently not. Must be one my little bro swiped.
Rayman - Good choice
Resident Evil Director's Cut - I get why this one makes it since they're doing a remake of RE2 which had they not should have been the obvious choice
Revelations: Persona - Surprised to see this one but good choice. The only downer is the load times
Ridge Racer Type 4 - I would have figured Ridge Racer Revolution was the shoe-in for this series.
Super Puzzle Fighter II Turbo - Good choice
Syphon Filter - See FFVII and Metal Gear Solid
Tekken 3 - I would have thought Tekken 2 over this as it was stupidly popular
Tom Clancy's Rainbow Six - Um. Okay. Ubisoft had nothing else noteworthy to bring to the table? I guess but at the time the series was more renown as a PC title.
Twisted Metal - Lots of people have already said that TM2 should be here instead of this one.
Wild Arms - Good choice for a 3rd RPG option.
Notable titles missing: Ape Escape, Blasto, Bloody Roar, Bust A Groove, Devil Dice, Einhander, Hot Shots Golf, Legend of Dragoon, Medal of Honor, Mega Man Legends, Motor Toon Grand Prix, Omega Boost, Parappa The Rapper, Philosoma, Suikoden, Tenchu: Stealth Assassins, Tomb Raider I/II.
I can see why some titles didn't make it such as Gran Turismo due to licensing issues. Medieval is going the Crash/Spyro route with a remake. SoTN is getting a remake as well. I'm sure there's others I'm not thinking of.