PS3 HD capacity?

Of course I'm also one of those that knows that the Core (no HDD) may be the killer hardware package at $199 one of these days which was most important for them going into this gen.... so I forgive them from a pure business decision POV.

True.

It depends on their business model(s). If having a hard disk allows them to support better or more business models, those additional revenue stream may subsidize the hardware. e.g., I was told 2wire.com has a device that has a BOM cost of 600.00 but it still beat out other cheap, commodity VoIP boxes over a few years from telco deployment perspective (For similar reasons + better support).

In MS's scenario, don't be surprized if the one with hard disk have better future than the core pack in the US market. It depends on how well their various large download services are doing. In which case, the core pack may be more interesting in other secondary markets.

We'll just have to wait and see. MS should have some initial numbers by now.

EDIT: Actually, the point is not to prove that PS3 HDD framework is better. It's more to summarize its position since it's not really clear to many people, including myself, previously.
 
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