Although I agree the PS3 needs more kids orientated content for the long run, IMO the time isn't right yet. At some point the PS3 will be cheap and parents will buy them for their kids. Currently IMO the best focus should stay teen/adult males with some additional family content like LittleBigPlanet and hopefully games like Jak & Daxter and Ape Escape (was reported to be worked on for the PS3) as well.
Deep stories, horror, more complex gaming requiring skill and yes even sexually tainted stuff, IMO it should all be covered.
There's still the cheap PS2 which is still being supported and have tons of cheap and fun kids orientated games for it. Crash, Spyro, Rayman, Lego series, etc.







