My humble opinion is that Sony released a console that wasn't easy to program for on top of all the other things people have already said. The price is a HUGE factor and the fact that no big-name flagship title has been released to carry the PS3 out of the ditch is another.
It mainly comes down to value as has been mentioned. Most people simply cannot justify the cost of a PS3 for the return. If the PS3 had games out that LOTS of people wanted, then more people could justify a purchase of a more expensive item because they would value it more.
For an example of price vs. value look at Guitar Hero. The entry price point is near $100 and most games cost around half that. Yet it sells well and is wildly popular (among most gaming crowds).
So in the end I am just one guy saying that the price of a PS3 to most people is not justifiable to the value of it.
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