It's like a soap opera!
$500 - $700 for a PS3 will be more than worth it. With all the things they're putting on it, and the probability of it running Linux and so being able to be used as a Home Computer, not just a Home Media Centre, well, you pay more than $500 for a good PC don't ya?
$700 is just over £400. Computers over here, good ones at any rate, start at around £600. For something way cheaper, but far more powerful, heck, who wouldn't?
But who believes that Sony will take the M$ approach and release more than 1 console version? I don't.
EDIT: Hahahaha! I've just had a wicked thought.
PSP plays films on it's weird little UMD thingies yeah? Halo: The Movie is coming out sometime right? Who else thinks that it'll be released on UMD when it moves to DVD stage? He he he! A M$ game turned into a film and available to watch on a rivals machine! Then again the 360 can connect to a PSP, so it'll just be Sony's way of getting back at them.