-they should make a ps3 called ps3i which is pronounced (PEE ESS THREE AI). it will be like a ps3 lite it will be 50% slimmer and 50% lighter. all other ps3 models will be cancelled. existing ps3 owners must mail in their ps3s to get ps3is

How are they going to slim it down??? What will they have to cut out and shrink??? If they're changing the insides this takes time and money for R&D...

-it will feature no blue-ray just dvd playback
-my logic is that you can upconvert dvds to look like blue-rays right? so the games will just upconvert dvds to look like blue-rays so people can save on diodes.

Well... to some it my not be noticable but upconverted DVD's will never have the look of a pure well done BD movie. BD drives are pricey at the begining but in the future it's a great investment for SONY Pictures, SCE, and the BDA. Also no BD means that current games don't work... games are getting huge I might also add...

-it will have a motion sensor bar as well as a redesigned controller (the psp can also be used as a controller which would drive psp sales)

There are already games that use the PSP as a controller... it's not a widely used feature... What's the plus with motion sensor bar?? They might aswell just improve sixaxis or use something completely different that doesn't exactly require a controller that's Wii or PS3 like...

-there will be no hard drive only sd cards (following suit with nintendo)

You can already use SD card on older models... also USB ports, memstick slot, and Compact Flash. Also there are games that need installs. A big part of the PS3 is the large amount of DL games and content you can get from the store. It's pretty media heavy [video's, music, pictures]. There's just soo much wrong with this part of your post. An HDD in the PS3 IS A MUST. Just like BD it's not a PS3 without a HDD

-there will be no more online, but maybe but you would have to pay for it for sure

WhAT??!!! WTH not???

-it will be able to play all existing ps3, ps2 and ps1 games as well as new games called ps3i games which use the sensor bar.

How's it gonna play PS3 games without a BD Drive?? Also if it can play PS3 games want's the point of making new PS3i games/?? You're talking about a whole new system....

-it will be more family friendly and maybe the console would be red or something? definietely not black.

I like Black... you can get a red PS3 or have yours painted... What does the color have to do with anything????

-it will retail for $199

SONY will kill themselves with that price point...