Mark this- Post of the year ;).
In North America, the main problem PS3 has is differentiating itself from the Xbox 360. People are still under the impression that the console is $600, that no exclusives exist, and that Live is better (which it is). Of course this isn't reality, but it is market perception. People need a reason beyond bluray to buy the Playstation 3. Hopefully the gluttony of titles coming out in the Fall (and maybe Home) will convince those on the fence, the diehard gamers, and the casuals to clunker down the money for the system.
Currently though, Sony is extremely smart with the starvation method. For some reason, the 80gb model seems to be an incredible value. The hard drive numbers game has an amazing psychological effect. Thus how the market percieves an 80gb console with bluray at $399 should be interesting to see.
Purely speculation, I think Playstation 3 numbers will increase once Sony has proven to Wii/PS2 gamers that it offers a unique gaming experience. I think the momentum will start shifting once Little Big Planet, Home, Resistance 2, and the other first party titles come down the pipeline.
Price is only one part of the puzzle. Microsoft could accesorise 360s with an X-mote, price the system at 199, and offer Halo 3 and Gears of War in a bundle. However, that would not prevent people from buying the Wii. If Sony can build that type of originality where it gives the console an identity (something both 360 and PS3 lack), it has a shot of becoming the premiere HD console.
There are still some pertinent issues Sony has to fix:
1) Lack of a streamlined online interface.
2) Bundling necessary items with the console. (HDMI cables, Bluetooth headsets, and a Sony mote *if it exists)
3) Standardizing backwards compatibility via a firmware update across all SKUs. (This can be done in the Xbox 360, and most people know that its being worked on behind the scenes)