@Sqrl:
I believe you're right, the biggest problem is that the PS3 just WASN'T designed to be a competitive machine. It doesn't allow Sony to compete as they'd wish.
I think the root of the problem is on the PS2. The PS2 was also a very uncharacteristic architecture which developers disliked, and it succeeded. Sony didn't realize that this time the playing field would be different, so they churned out an analogous console, the PS3 (again, an uncharacteristic architecture which developers dislike). The result is what we're seeing now!
My Mario Kart Wii friend code: 2707-1866-0957







