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All I gotta say is shrinking it down is a good idea, however it would lead to a power brick and overall the main unit PS3 will still be larger than the Wii which would lead to 360esq complaints.

Removing the power source from the unit is both good and bad.
It adds extra wires and looks a bit tacky but it also reduces internal system heat and size.

My only thought on the matter other than the facts is.. if it looks anything like the mock up I saw they'd be utterly stupid to produce that. It's looks hideous.. It looks like a wii got flattened and they handed it a riot shield..