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Actually I was in Best Buy today and they had none of the Wii and Xbox360 Premium/Elite/Halo Bundles left.  The only ones left were lots of PS3 and a few 360 Arcade models.  Some people came in and asked for 360's and Wii's but sales people were saying all sold out and not to get the Arcade.  I asked the guy if he plans on playing online and he said NO so I said Arcade is fine.  But I did see some people walked out with a PS3 since they couldn't get their kids the console they asked for. 

I am in agreement that it would be difficult to catch up in 2008 since I can't imagine MS will just keep the prices the way it is in 2008.  If they dropped it to $199 then this console race will really get interesting. 

And for those who says blueray and graphics are everything... well Wii and PS2 have none of those and they are still selling more than PS3!