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I think there are tons of differences between the PS2 with DVD and the PS3 with Blu-Ray. In 2000:

  • DVD had been around for 3 years and was already becoming a well established standard; this meant that there was a lot of comercial demand for DVD and a lot of retail (and rental) infastructure in place to push the format to the next level; at the time most movies were released to DVD and the back-library of DVD movies was quite huge. Also, the quantity of DVD players being produced also made adding DVD support to a console reasonably inexpensive (in particular for a company like Sony)
  • Consumers already had the necessary equipment to see the difference between VHS and DVD; all it took was a TV that had RCA inputs (any TV made since the mid 80s) and sterio support and the improvement over VHS was obvious.
  • By 2000 most games were spanning multiple CDs in PC and Console games.

Blu-Ray isn't a bad technology, and I'm certain that people who bought the PS3 are glad that it is there but it certainly is the wrong technology for the time.