No one sees that being impossible to play multiplyer games, people are going to need new single player experiences to spend their time?

As others have stated in terms of revenue they are for sure taking a big hit, the PSN has been down for a week and there's litteraly hundreds of thousand of transactions on there a day.

In terms of hardware I doubt it since its expected to be fixed fairly soon.  Now if this continues for 3 weeks or more things could be very different but for now I think hardware will be fine.

The publicity has been pretty bad, over 1400 news articles on google news. One would expect that to have some impact on sales.

Like you said, I feel the exact same way. While it might change a few peoples minds, I think the overall effect will be so minimal that it will go almost unnoticed. If anything all this press is extra advertising and ultimately could help sales. Any press is good press, right? 

It has already reduces sales by millons.  I doubt it will reduce sales by billions unless it happens for over a month.

About the only thing that will take a serious hit will be PSN purchases for obvious reasons.

As most people have already stated. I dont think the sales of the PS3 will be affected at all because of this. However we may see a small drop in the software for the console.

Um...

http://blog.us.playstation.com/2011/04/26/update-on-playstation-network-and-qriocity/

console sales will likely not have much problems...but sales of content off psn will likely be a smaller for a considerable while.