Does the Wii prove that the HD razor/blade model is flawed?

[bdbdbd]

Well yeah, the model requires the customer to buy blades. This becomes problematic when your razor has functions that doesn't require you to buy blades, such as BD player.
The more "non-blades" you have on your device, the more stupid the model is.

The first Playstation wasn't sold at a loss, as far as i know, but it didn't make that much money because a huge amount of games was sold at a laughably cheap price, which hit the licence revenue and Sony didn't have strong first party, so the profits came mostly from 3rd party licences, instead of strong first party sales.