@ ironman
No, it is selling so well because it has reached a good price point. plain and simple.
That's a very important reason as well, I used it a lot in the past. A couple of years ago I said I anticipated a cheaper slimline PS3 to be released somewhere in 2009. Many people acted as if I was crazy....
Even so, with a much higher entry pricing, Microsoft shifting focus from PC gaming towards XBox and an extra holiday season (5 extra months in PAL regions) the fat PS3 still considerably outsold the 360 taking equal timeframes.
Once again, you can have all the features in the world, but if they are something the majority of consumers will not use
A majority of HDMI enabled 360 users still don't use HDMI? Maybe kids on cheap arcades/SDTVs in their bedrooms, are you sure about this?
Funny, they weren't complaining about it last gen, and multiple discs is still a viable option. Other than you, I have heard nobody say that devs are complaining.
"According to Game Informer, nearly every developer they talked to at X05 expressed difficulties fitting their launch titles onto a single disc"
http://www.joystiq.com/2005/12/04/certain-highly-anticipated-xbox-360-title-filling-four-discs/Some games can be more easily cut into pieces than others, for example it's well known a lot was cut out of GTA IV to fit DVD.
This is the HDTV era for console gaming, last gen was SDTV focussed (lesser quality textures, etc required to shine on TVs).
Your loss, you are one person, not the masses of "average" consumers.
My loss? Why would I prefer to be average?
For all I care, I and my friends would be the only PS3 users on earth, as long as Sony keeps pumping out those high budget top quality exclusives for us!

Not in console gaming.
Video games are video games, similar code and game engines. NVidea and PPC processors already had a good reputation regarding console gaming. Microsoft had PocketPC and Windows DirectX gaming, game consoles are just a step in between. The PS3 could be turned into a home computer like the Amiga.
I fail to see how any of this has anything to do with the topic at hand
You said they were "trying to gain recognition".