Is this the part where we take every word in this statement and try to make a freakishly big deal out of it?

At least it is not something that came from unknown devs-insiders or whatever.

This is Kaz saying we're not releasing PS4 until MS releases their console because we want to prolong PS3 life to recoup losses.

Since this is Kaz Hirai, who was President of both SCEA, and SCEI at one point, I wouldn't call this a freakishly big deal. His sayings are more accurate than "anonymous sources". I say we listen to him before the leaks. 

"why go first when your competitors can look at your specifications and come up with something better?".

I doubt Nintendo or Microsoft could change their specs on a dime like that.

If it's true than its a great decision, Sony can take the time to create a better product just like what they did with the PS3. Not worried at all.

What has this to do with releasing it later? He's implying that they won't reveal it first, not launching it first.

I think he means something like their responce with Sixaxis.. Or was that something we buried deep away and never talk about it anymore.

I guess this kinda confirms the PS4 will launch a "long" time after the 720. My guess is that a max of 6 months, because more than that will be dangerous for Sony.

Few in the industry suggest that the next Xbox and PlayStation will be released more than several months apart. It is also likely that both Sony and Microsoft executives have a clear understanding of their competitor's tech already, leaving less reasoning behind Hirai's claim.

EXACTLY. Both are coming this year at lest in 1 territory. What Kaz is most likely referring to is an early announcement/reveal. Maybe he means Sony plans on unveiling the PS4 after Xbox to take away some of the spotlight.