Gaaaah...! For a minute I thought they actually made a smart decision with that price drop, and now they're practically nulling it!? And I was starting to want to buy it, too...
I've been thinking recently about how the PlayStation and PlayStation 2 became notorious for hardware problems in early models, but how the PlayStation 3 has actually been pretty reliable. But it seems the price you pay for that reliability is the price.
I still want one though, since I want two consoles (like I've done for the past two console generations) but can't possibly bring myself to buy an Xbox 360. I'd just be unable to live with it. But Sony is going to need to halve that price before I do so. They'll do it eventually as well, and that's when I'll get one.