Would it be better for the gamers if Sony became software only?
We would have to buy only one cheaper console to play Halo, Forza, Gears Of War, Killzone and Uncharted, Lost Odyessey, Ni No Kumi, no more timed exlcusives or exclusive DLC content. Think about all of those PSN and XBLA games on a single platform.
Developers wouldn't waste time to make an exactly equivalent port of the same game on two different platforms every time. Think about how many new IPs and games they would create with all those free resources. Ah, also 3rd parties would have more time to optimize games, to make them look the best.
SCE would have spent less time trying to figure out how to make the Cell look more powerfull than Xenon, maybe The Last Guardian would have been on sale at this time.
No to mention Sony wouldn't bleed money in a price-war against Microsoft, on the contrary they would make a lot of money selling more great games to a wider userbase (I think a lot of X360 owners would go buy Uncharted immediatly id they could).
Think about it ;)