LOL back to its original price? that would be MASSIVE FAIL if it does happen.

A slim model and a price cut are already confirmed. The slim will be the model getting the price cut because the current "phat" models are to be phased out over the summer.

Care to link us to the interview in which a Sony exec confirms both of these things?

Oh, you can't, nevermind...

I believe the word you were looking for is 'rumoured', not confirmed

Sony screwed themselves this gen, I really don't see how they can bring themselves out of the red. ( although it is a possibility)
Here is the way I see it, Sony is currently losing money on each console sold, so they release a new cheaper to produce console. If they keep it at the same price, since it is missing some of the coolness factor ( if the rumors are true) they will not sell any better than the current PS3 is. Now if they drop the price, they will sell more. For Sony, all they can do is try to gain market share at this point to give them leverage next gen. Who knows, with a price cut on the slim, and the PSP go having mega coolness factor as well as being more portable, they may actually be able to break even. Hopefully they try to gain some momentum this gen and use it to propel them back to a money making status next gen.

What rumors? From what I've heard is that It's keeping the 2 USB ports and will be adding more memory and possibly bring back PS3 b/c

Well , the Matte finish, losing the touch buttons, Ditching the wireless on the low end model, using a power brick. To many people this will seem like a downgrade and thus the price should also be downgraded. I know that if Sony does all that it will drastically reduce costs, so it's smart, but it would be stupid not to cut the price.

The Slimline PS3 is a fake the photos were very poor photoshop efforts. Sony has not even announced a Slimline PS3. I doubt there will be a Slimline PS3 for at least two years. However a PS3 price cut later this year is possible say 50-50 chance.

I doubt Sony would get rid of Wi-Fi 

The ones I saw were not a photoshop, and there were two people claiming to have held them. So it is a real possibility, I don't necesarily believe them, but  Iam not going to write them off just yet. Besides, this thread is about the PS3 slim and a pricecut. So it's speculation, play along mate.

They will have a price cut, but not a $100 price cut, then the PSP Go and PS3 slim would just be $50 away from each other, so it will be a $50 price cut and Sony will make about $2 on each PS3 slim, and about $100 on each PSP Go.