There's a very high possibility of price drop or a hardware revision for PS3 this year, so if you think you can wait, then go for Ps3 as it's more advantageous to have one than a stand-alone bluray player.

But if you think your family does not need the extra features, then just go for the bluray player...

What is more likely? Playing on two PS3s or watching movies on two players at the same time? If money is of concern, check you electricity bill and calculate the kWh that your 2nd PS3 will additionally burn compared to a low-power Blu-ray player. If you have a PC around, check Blu-ray drives (the cheapest ones here go for $50).

i'm in kind of the same place.  I'm probably going to buy some sort of a blu ray player for the family room this year but i haven't decided.  Honestly I'm kinda waiting to see of the ps3 sees a price drop this year cause i'd actually prefer a ps3 to a stand alone.

however, with the current price differential and the lack of a "real" cloud game saving (i'm not counting the psn-plus feature recently released) i'm having a hard time justifying it.

2nd PS3, the cell in the slim can process audio better allowing for cleaner audio.

Or buy an Oppo Blu-ray player. After I get a 1080p TV, I will be getting one!

The PS3 gets continual updates and support. So if anything big were to come to blu-ray I'm sure the PS3 would get it(ie 3D blu-rays)

The same can't be said of a regular blu-ray player. So I just say pick up a second PS3 

I would get a less than $100.00 Blu-ray player.  But make sure it's Blu-ray 2.0 compliant so you can stream movies from Netflix and others.  And make sure it has the kind of networking abilities you want it to have (i.e. wired or wireless.)

Or

If you might get a new 3D TV you could get a new 3D Blu-ray player.  The PS3 is great, but starting to show it's age as it can't quite keep up with the new 3D HDMI 1.4 standard for full 3D.  You could get a nice 3D TV for your main room, and move the older HD TV to the other room.

Or you could always get another PS3 if you want gaming in both rooms.

I had this decission to make a while ago.

I liked the idea of getting a blu-ray player that was not the PS3 because; The user interface is typically more basic and traditional.. it is easier to use for the ladies. Also The look of a blu-ray player is pretty slick and looks nice and square inside the tv cabinet. There is often times no fan noise either, so not a bad option!

But for what I wanted;(wifi, netflix) there were very few options, and none of which were cost effective when compared to the PS3.

Now at this point in time, my only PS3 was the original 60 gig. I ended up buying a slim which has become my main ps3 because it is not as loud and I feel as if my old PS3 is beginning to die.

I have transitioned alot of my save files and content from the old to the new.

So, unless you can find a feature and price comprable blu-ray player, $250 or less with the same features as a PS3, the answer is; Buy another PS3.

Grab that second PS3!  Then you can play two player online with somebody in your own house.  It's actually a lot of fun!

If money is really an issue, dont buy anything.

If you wanna watch BluRays you gonna need a HDTV. And if you are capable of buying a HDTV, you find the money to buy a more expensive player aswell (incl. HDD).

-> go for the Ps3, or a bluRay player (incl. HDD) which suits you/ your family more than a Ps3.

One question: Why do you need a HDD? Most HDTVs are nowadays capable to run mkvs, xvids, avis  from external hdds.

My friends and I did this, and I must say that I agree. Less cheating in multiplayer=more fun. Not to mention you can have more players this way.