Exactly,  plus there is a hidden cost for the PS3 way of doing it.   The cost of the backup source.  My 8GB flash drive was not big enough for my back file the last 2 times I swapped out a PS3 HDD.  I had to go buy an external HDD,  that cost me about $80.  Otherwise I would have had to delete everything on my hard drive and re download everything. 

Im glad that you're consistant. I remember working in retail at the time and seeing some people get quite angry when they found out they needed an accessory which jacked the price up by 20-30% (can't remember exactly). The business model is monopolistic within each consoles eco-system. Theres no such thing as an open console unfortunately and they all have their share of proprietary hardware.

I can't blame Microsoft for the bed they made with the HDDs. They already use it as a means for distinguishing the different console SKUs so they cannot offer them cheaper until the price difference between the Elite/Arcade becomes smaller. I simply judge it based upon the value of the size + easy transfer cable and the saleability of the old HDD. The proprietary nature of Microsoft makes the 60GB HDD I possess worth more than the PS3 HDD of the same size I have in my launch unit and this more than offsets any additional cost I might face. Furthermore, given the ability to stream media onto either system why would I need more space than that? Both options in my mind are fair alternatives of each other and I wouldn't really say that one option would be partcularly better.

I play most of my games on the PC due to its open nature, but I suspect open also suffers from the pitfall of human nature as seen by the > # of PS3 hacks in games as well as the even greater problem on the PC of the same between piracy and cheating.

The response is pretty simple: if you don't agree with the pricing, then you don't buy the product.

Manufacturers can only charge the most consumers are willing to pay, assuming there is no shortage or limited supply of product.

And the price of HDD space has dropped considerably, even if it hasn't dropped to match current market prices. It wasn't that many years ago that MS was charging $99 for a 20GB HDD as an index. 

Personally, I never liked the proprietary HDD idea from MS, but it is what allowed them to have a rock bottom priced SKU, making it an affordable option for those who don't spend more on video games.

In the case of the Xbox 360, the HDD size is considered a "premium" feature and is largely responsible for what little profit they make on each hardware unit sold.

The PS3 option is for those who can use a screwdriver and have an external HDD, assuming they want to back up their entire drive, which isn't necessary.

If you go off the minimum, game saves are the only thing you'd need to back up. PSN games would be the second thing, which can always be downloaded again. Backing up demos seems a bit anal, and as for media; you'd generally have to do that for any media stored on any computer if you didn't want to risk losing it. Beyond that, the only real headache you save yourself with a full back up is the process of reinstalling any of your games.

But the external HDD can be used for other things when you're done transferring. The only value left in an Xbox 360 HDD after it's been upgraded is whatever you can sell it for on Ebay.

Its not necessary, that is true, but for someone like myself that has bought about 40 PSN games and all 20+ episodes of Qore, plus all of the DLC I have bought for each of my 75+ bluray games. Being able to transfer everything easily can be bliss. Because it saves the hassle of spending the next 3-5 days re downloading and reinstalling everything again. 

And just having an external HDD isnt good enough,  it needs to be the correct format, the PS3 wont read it otherwise.  So if you have been using it for other things, and its not in the correct format, you will either have to reformat the external HDD or setup a partition.  The latter is pretty easy but probably not that easy to do for the average consumer who "knows how to use a screwdriver".  

It's a definite improvement over the outrageous 360 HDD prices.

Generally I don't, obviously.  I consider my purchse (or lack thereof) of as a vote either for or against a product.  The majority wins, of course, which is fair enough - but that won't stop me pitching my vote based on what I believe.

Of course that HDD is cheap compared to a state of the art Graphics card... but aren't you comparing Apples with oranges? if the graphics module of your x360 dies, can you exchange it for another anyway? Wouldn't that likely cost you much more?

On another note, The DX11 enabled Radeon card that you just showed would probably be able to run games at a graphics level that would probably make the x360 melt. Stop making a fuss and accept the inevitable.

Misleading title. Its FOR SALE, not ON SALE