It would be no big problem to make all titles downloadable. The problem is that it would require a huge hard drive on the PS3, which would cancel out most or all of the savings from not having the Blu-Ray drive.
In other words I call BS, but not for the same reason as most people in the thread (ridiculously assuming that it wouldn't play games... wake up guys!).
My Mario Kart Wii friend code: 2707-1866-0957











