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I definitely wouldn't buy it!
I'm sorry but I disagree with everything you said, except sorta the PS3i thing, which Sony's already working on except there not going to call it PS3i it'll be Slim PS3 like what they did for every other console they made.
Here's my opinion of what you wrote (People wont by a PS3 if it immitates the Wii, and software sales would be down a lot and more developers would probably just stick with the X360)
ok here goes
Everything Below is an Edit:
hello I decided that I should share my wisdom with you people on how the ps3 can win this generation. although i am glad sony isnot winning for gimmicks this time and nintedo is back i feel like I should be the stronger person and give sonny some advice. here is my plan to skyrocket the ps3 back into the limelight 
-they should make a ps3 called ps3i which is pronounced (PEE ESS THREE AI). it will be like a ps3 lite it will be 50% slimmer and 50% lighter. all other ps3 models will be cancelled. existing ps3 owners must mail in their ps3s to get ps3is
I already explain this above, they'll be coming out with a Slim PS3 probaby this year. And theres no need to mail in a PS3 to get a slim version (especially if your me and you have the 60 GB version)
-it will feature no blue-ray just dvd playback
-my logic is that you can upconvert dvds to look like blue-rays right? so the games will just upconvert dvds to look like blue-rays so people can save on diodes.
No, Blu-ray is the way to go, it was a very risky yet wise decision made by Sony, thanks to the PS3 Blu-ray won the format wars and soon will be the must have in every home. They also set themselves up for a cheaper and much better Blu-ray drive for the PS4 which can hold up to 500 GB on one disk, Blu-ray is a future investment for a cheaper PS4.
-it will have a motion sensor bar as well as a redesigned controller (the psp can also be used as a controller which would drive psp sales)
Wouldn't work, copying the Wii isn't going to help the PS3 at all, Sony will have to come up with something as different and original as the Wii did with the Wiimote.
-there will be no hard drive only sd cards (following suit with nintendo)
I don't understand this logic? especially if this is a HD console, it needs a lot of space and SD cards just can't cut it for now. You need atleast 60 GB for a HD console, and I'm even running out of space on my PS3, out of the 60 GBs I have on my PS3 I only have about 7 GB left.
-there will be no more online, but maybe but you would have to pay for it for sure
Don't understand this either? Online is one of the best features on the PS3 (especially FREE online) and its making Sony a lot of money even though its free, Playstation Home itself makes Sony close to a million dollars every month let a lone all the the Playstation Store.
-it will be able to play all existing ps3, ps2 and ps1 games as well as new games called ps3i games which use the sensor bar.
They'll likely bring back the B/C for the PS2 when the PS2 dies and the PS3 is much cheaper. And about the PS3i games...no wouldn't work.
-it will be more family friendly and maybe the console would be red or something? definietely not black.
I personally like the way it looks, all shiny and black with chrome trim, it's like a very sexy car. Making it red seems weird to me, but that's just what I think, here's a red PS3
-it will retail for $199
And I can't really respond to this since the PS3 probably could go $199 if they did everything you wanted, in my opinion I think as cheap as it is, it'd be a disaster. I dought it'd sell any better then it's selling now. It's not entirely all about price, just look at the X360, it's cheaper then the Wii and half the price of the PS3 and yet the PS3 and X360 is pretty well neck and neck now, some people were even thinking it'd sell better then the Wii because of the price.
This is my logic, well it would first be the cheapest console available and people would think hmm I want a ps3 now I can afford one! and why buy a wii? also think about it, people would have to PAY for online and PAY to use a PSP as a controller. think of all the revenue for sony. also please consider that the manufacuring cost would be so low. every ps3 sold would make at least $100 dollars.I hope I have provided a strong argument in my case . Please do not hesitate to reply with any suggestions. If enough people are interested I plan to e-mail this to Sony and tell them that they can use my idea only if they credit me.
Don't sent this to Sony please.
This is my idea how the ps3 can win (even though I am more than happy with NINTENDOMINATION). Please post your ideas on how the ps3 could win this generation.
Essay Pro