...a possible $299/$350 PS3 slim?....At least in the U.S. and UK (the territories where the 360 is far more successful than the PS3), I think it´d hold its own pretty good.

hardware wise the ps3 will have the edge due blu ray,free online. for people buying first HD console it's the way to go.
the whole europe and japan get GT5 and FF13, and microsoft have nothing agaist those there.
the fight will be interesting in america, if a 299$ can get it back to outsell the 360 weekly like first half of 2008, because in america 360 have the halo expansion. and reach later.

In the USA it would put up a good fight. Everywhere else......nah.

Yes, it will help.

I think that the only way a $299 elite wins out over a $299 PS3 is with really good bundling (modern warfare 2 / Halo ODST)
Otherwise I think if Sony goes for the $299 price MS will have to move the elite to no higher then $249 and maybe cut $20 - $50 off the Arcade version.

its already 349 in Canada...with GTA4 or RE5 too.

$150 for arcade
$230 for pro
$270 for elite

*and the generation comes to an end...

Impossible! Essentially that means that PS3 would get a hardware revision and a $50-100 price cut, while the X360 would just get an upgraded HDD.

Even a $349 PS3 Slim would crush a $299 X360 Elite in the American market.

A $249 Elite is needed to match a $349 PS3 Slim in sales.

A $229 Elite is needed to match a $299 PS3 Slim.

Same as 2008. Can a $350 20GB 360 Pro "keep up" with a $400 40GB PS3? The answer is yes, quite easily, it did, we know this. All MS need do is drop $50 by September 2010 and we'll have a repeat of last years events.

The OP is like asking if a $299 PS3 160Gb would stand up itself against $350 Xbox Arcade.