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none of this is making any sense to me, in the UK we are expecting a £299 40gig machine now, as it is that would be appealing but everyone expects it to play PS2 games, removing a key advertised feature is suicide. Consumers will be very confused.
Even at £299, anyone with half a brain can see the £399 package that is currently available with 2 games (and sometimes a film/remote/hdmi cable) offers far more value AND has a bigger HDD, full BC alont with the other features of the normal machine.

I wont believe any of these rumors until sony announce them.

I think sony should just clear everything up, get some definate packages out there to prevent confusion, so far the average casual net surfer could know about the existence of about 5 different models, even if they arnt available in their region, the net is sill full of stories about them, its getting messy.