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NintendoMan said:
If its price tag reflected its lack of blu it would probably be no.2 or at the very least a much much smaller gap and much more competitiveness in terms of third party support. Nintendo would be unaffected for the most part. Blu probably would have lost to HD-DVD which may be bad for Sony. I hate all things HD anyway tho so I would probably like the PS3 alot more.

The PS3 would still put out HD graphics. the Blu-Ray player only also allows it to play HD movies...

As to the rest of your sentiment though I agree.  IT would either be second, or have a MUCH smaller gap with the 360, even given the year headstart the 360 had.