^^no, it's definately the price point. Look what happend in November when they got the price down to $400. People don't care about all the previous SKUs. They go to a store and see one or two different PS3 models, they ask the sales person or the nearest teenager what the differences between the two are, and they decide which one to buy. They don't care if Sony had 350 previous SKUs out there, they see two in a store and the make a decision based on those two, not the previous 350 discontinued SKUs.
Exactly. The only people confused by the different SKUs are those of us trying to keep a running tally of all the different ones in all the different regions... and even then it's not hard to keep track if you're paying attention. For the average customer, it's a matter of choosing between two on the shelf, whose important differences basically come down to: 1) price, and 2) backwards compatibility.
This won't be the last PS3 SKU, and it shouldn't be. It only makes sense for Sony to keep updating the harddrive size and the bundled items, because this is a rapidly changing industry.