Wow tc you got a grim look on things. The Wii became the non-gamer's gaming console and as we've seen so far they pretty much make out 50% of the market. I would go as far as to say that the Wii is in a totally different non-competing segment of the gaming market then the 360 and PS3.
So the PS3 may defeat the 360 but it will not become the new PS2. Only an innovative device such as the eyetoy or the Wii-mote could make that happen. And Microsoft has just as much chance as Sony, so if the full body motion thing becomes a hit then it's all about the PS3-wand and Natal, not about the PS3 Slim. BUt for now the PS3 will not become the new PS2, that titles is for the Wii.
As for the PS3 outselling the 360, I think your right about that one. The Playstation brand is a lot stronger but why are you feeling bad for the 360 fans? The 360 has sold enough consoles for every multiplat to get a 360 release, it is too important to ignore even if they will never surpase the 35 million mark. Feel bad for Microsoft, they put a lot of afford in it and they could only win the US market.
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