CNET has rated one standalone as being a better Blu-ray player than the PS3 in their tests... but it sells for over $500. The only downside to using PS3 for this function is that it loads discs slower than standalones.
EDIT: Actually there's one more potential downside: if your friends want to control it with a universal IR remote like Harmony, they're probably out of luck unless they buy a fairly pricy converter thing. PS3 is bluetooth. I think some Sony Brevia remotes work with it, maybe. Or maybe not.







