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Its not just about hardware it reenergises the industry and gives the console makers a chance to pull ahead of the competition.

As for the hardware not needing to be expanded well the PS3 may be able to huff and puff for the first few rounds of nex gen but imagine if it went up against an Xbox with

250 GB user replaceable HDD as standard
Out of the box Natal and controllers
Full 3D support
HD media (Blu Ray or proprietary)
Quad Core Processor coupled to 4GB DDR RAM
Dual ATI Evergreen GPU to ensure 100 percent 360 backwards compatibility and 1080p 3d Games at 30+ fps
A decent cooling solution coupled with exhaustive testing


Now that would shake up the industry !