Yes.

I guess we won't know about the reliability part until a few months go by.

if its only $250 to make, they should be about even or making some profit on the PS3 slim.

The PSP is a profit machine for them, and so is hte PS2, specifically PSN/PS software would be money for them. PSP go! is a money making monster for SONY, its possibly cheaper to produce than the PSP 3000, and it will be $249

I was wondering if the smaller size saves any significant money on shipping and storage costs.

According to John Koller, it's still not going to be profitable at first, but it's helping them move closer to it of course.

http://ps3.ign.com/articles/101/1015100p1.html

"The redesign does kind of places us on a path towards profitability," Koller said citing the smaller size of the Cell chip, the fact that the system is lighter, and so on. "All of those things kind of lead to a better place in the cost of goods."

As long as there isn't a friggn Orange Light of Death, the YLOD's cousin, I may just pick one up if my 60 gig ever dies on me.