If PS3 launched alongside XB360 at the same price without BR or standard HDD, Microsoft would get hammered. There was just no messing with the Playstation brand at the time.
Look this kind of discussion is just really meaningless. You could just as well have had 360 launch with HD-DVD included and a standard HDD, while Sony stuck with no HDD and a basic DVD player. Then who knows Squeenix and Konami decide to go with the HD-DVD format carrier.
If both Sony and Microsoft have a long breath, then Sony will win in the end, just as Amiga and C64 beat their Atari counterparts eventually, even though the Amiga especially was way more expensive than the Atari ST. After a while they managed to bring the prices into a competitive range, and then the extra power of the Amiga started to count. The PS3 and 360 aren't nearly that far apart, and the race hasn't nearly run its course.
But competition is a lot more fierrce this generation, and that shows in all sorts of ways. Nevertheless, when the PS3 gets some of its bigger game franchises out, things will change. And incidentally I just checked out bestbuy, and they're sold out again.
From the looks of it, Blu-Ray has a very good shot at beating HD DVD, and this will have an impact on the PS3. And eventually the PS3 will get more and more visible games out that show what BluRay can do for games. This year is not the year of the mainstream buyer.
The 360 did good, but it's doing just the same as the original Xbox still, so let's not get too carried away. The Wii is doing absolutely great, but it's not in the same market that the PS3 is in right now. The PS3 will hit that market later, but it will get there for sure.
The 360 is doing well, but I think anyone who thinks that the race hasn't just started is getting carried away. Christmas 2007 is the first important measuring point of the respective consoles' success. By 2008, we will have a much clearer picture yet.