To turn this thread into a positive, lets look at logical idea's to turn the playstation 3 around, without having to spend a ton of money, or drop the price. Lets not aim for number 1, but instead lets aim to take the xbox 360 down a notch.
1 - Playstation Home - Like second life, this has potential to become huge. Very huge, its already here, it just needs tweaking according to many people's opinions. Sell virtual space to companies who wish to expand their business to the virtual world, much like second life.
Another idea for PlayStation home is allow for a virtual marketplace, allowing people to trade levels in LittleBigPlanet, game records, show off trophies, compete in tournaments. Do MUCH more than a little virtual dance club.
What I love about PlayStation home is that it's already here, and its in its very base form. I can see it being upgraded cheaply and being able to pull in VAST amounts of numbers, epically if it is marketed towards corporations who wish to expand their presence throughout virtual-space.
2 - Sackboy, Sackboy is Sony's new mascot right? Its been established. Alot of people find him adorable, alot of people find him creepy. It doesn't matter what your opinion of him is, Sackboy represents the Playstation 3. Thus, Sackboy should make many, many appearances in other Sony Games. If not to boost the sales of LittleBigPlanet, but to allow the establishment of new titles without the risk of sales being below 1million.
3 - Bundle, Sony should bundle something with the 399.99 80gig model. It doesn't need to be fancy, or expensive. Xbox 360 pro comes bundled with Kung-Fu Panda where I'm at. Kung-Fu Freaking...Panda. Does this change the value of the 299.99 Xbox console? Yes, I've still seen Xbox 360 pro's sold at 299.99 without the bundled in game. While the price remains the same, the value does not.
People enjoy value with their purchase. They like seeing a little extra for their money, thus if the 399.99 playStation 3 came with something from 07'... say, resistance 1. It'll not only boost sales to Resistance 2, but it'll boost playstation 3's sales without much cost towards Sony.
I've never taken a economic class in my life, all I know is what I understand from you guys and what reading these forums taught me over the years. So I hope these ideas have merit, if not. Let me know, I'm open to criticism.