I had a thread on this first, but you stole it :(
Anyway,
I think it's a 'damned if you do, damned if you don't' thing. If they were to release a $400 SKU, people would bash it because it's not having those extra features, but then complain about the $500-600 price because of all those extra features. Personally, I think that would be really interesting if they did do a $400 version like that because I think it would attract lots of sales.
Compare a $350 premium 360 (with the rumored price drop) and a $400 PS3. I think that would defiantly put the 360's popularity to the test and help to begin to sway the vast amount of the millions of last-gen PS2 owners (and others as well) that are currently on the fence.







