To pull something like this off, Sony would need a super-aggressive price point, a larger HDD, and a complete revamp of the PSN. They would have to start offering full games over PSN... Which might work in some areas, because they're already relying on large download speeds to make this work in the first place. To complement the device, they would have to add a huge multimedia infrastructure to PSN to lure buyers into the new device.
Still, too early. It's too radical a transformation and the public wouldn't bite. To boot, the idea fails on two levels:
1. Blu-ray drives just aren't that expensive anymore.
2. This defeats Sony's intent of pushing Blu-ray into homes, possibly at the expense of the Playstation brand.
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