In and of itself, yes, it does what it supposed to do. However the price/experience for a gamer is questionable when compared to other offerings available. Add games selection and it becomes decidedly more questionable. Not that everyone will question it. Almost 2 million agree with you. The other 98+ million aren't convinced yet.
You go too far in generalizing 'gamer' Chef; I also raise an eyebrow at your seeming implication that those present owners are seemingly 'blinded' to the truth rather than cognizant of it. There is appeal to the PS3 above and beyond its present game library, whether you choose to recognize it or not. And the fact that you said you would purchase one yourself at ~$200 would lead one to assume you see a value not completely duplicated by the other consoles as well - it's simply that for you, that value is not worth more than $200. For myself, it was worth $500. Different people value different things. I'm puzzled by those that hail these results as a 'consumer' victory - the consumer *always* wins, because he does what he feels will benefit him the most. More options in the marketplace means a wider swath of the populace covered. So, a victory for MS, a defeat for Sony, the indication of a paradigm shift with Wii; all of these are valid things to say. But the idea held by some that if PS3 had sold double 360 or whatever, that somehow the consumer would have been 'losing,' just sort of startles me.