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makingmusic476 said:
Those most likely to embrace DD and XBL are early adopters and technophiles, people who would've already bought a system if they wanted one. The people buying in now would probably make very little use of such large HDDs.

 That's a very good point actually.  Both the PS3 and 360 need to start trying to appeal to a more mass market/casual userbase.  This "arms race" of specs will only keep them hurting each other while the Wii pulls away further if they don't do something about it.   Instead of building bigger SKUs they should just concentrate on cutting the price of existing SKUs especially the 360 if it wants to nip the PS3's momentum before it gets too overwhelming.