The article Titanio posted say the PS3 is definitely NOT a poor-man's BD player, so basically they are loving it. Loading of a BD takes 7-9 seconds and playback seconds 2-5 seconds after pressing the button which is significantly faster than the HD-XA1 HD DVD player. The only point that is not found in the PS3 compared to a dedicated player is complicated equalizers and other picture configuration options but the playback quality is already very high without tweaking. AVCHD and MPEG2-TS playback, but no DVD upscaling. As for the menu, probably they mistakes HDMV for BD-Java but the menu is very fast anyway.
BTW someone has attached a 320GB 3.5inch HDD already.