PS3 Apparently A Computer
Rinzai writes to mention an article on Gamasutra, noting a statement by Ken Kutaragi where the CEO states that the PS3 is a computer, not a console. From the article: "He went on to outline a scenario where many parts of the PS3 were upgradeable, much more like a PC, noting: 'Since PS3 is a computer, there are no models but configurations', and continuing (though talking in the theoretical): 'I think it's okay to release a [extended PS3] configuration every year'. It's clear from the comments that Sony is indicating that it will be possible to upgrade hard drives and perhaps even other components easily."
It's nothing at all like the XBox 360. The low-end 360 isn't a "true console", because it lacks the HDD. That basically neuters its usefullness for games. The low-end PS3 is a "true console", in that it has everything needed for gaming. The $600 PS3 is a "deluxe console", for people who are interested in viewing BluRay video.
There's nothing wrong with offering different versions of a product to people with different needs, as long as each of those versions is complete for what its intended to do. I mean, should Apple stop offering Macbooks because its better to get a Macbook Pro upfront? Of course not! The Macbook Pro serves certain needs, and if you don't need its extra features, the lower end model is perfectly appropriate for you. On the other hand, if Apple released the Macbook with the OS on flash and no hard drive, then you'd have a legitimate complaint.
To put it simply: it's not better to get everything up front if you don't need everything in the first place! I'm getting a low-end PS3 because I'm hooking it up to a display (2405FPW) that lacks HDMI, and I don't need wireless because it'll be sitting 2ft from an ethernet jack. The $100 premium of the high-end PS3 would be wasted money for me. The same thing with anybody who doesn't own a TV with an HDMI input, and doesn't plan on buying one, or isn't interested in BluRay at all. The $500 PS3 is for those people.
A deep unwavering belief is a sure sign you're missing something...