That is one way to look at it, the other way is that it´s finally keeping up with the 360, even if barely when it used to be beaten and looked pretty bad.
I am not saying that Blu-Ray is the killer application for everyone, but i personally think that anyone ignoring the effect is ... ignorant
It´s one of those things that helps and will help the PS3 keep it´s momentum. Hell even this forum has it´s fair share of Blu-Ray/PS3 buyers just because they wanted PS3/Blu-Ray.
Oh I agree that there's a large portion of people who want a PS3 for BR. I know lots of multiple console owners that bought a PS3 and don't want or like any of the games out on it, so they stick to the 360's awesome library and Wii for the "group experience".
My disagreement comes from people in this thread putting together bullet point lists on what the 360 needs to make it as good "value" as the PS3. Those same people were telling us that the PS3 was good value at $599. My point was the market will have the ultimate say on what "value" is... you can go and tell me you
need Wifi so that's a bullet point, and Live is $50 / year so that's another bullet point, but at the end of the day you're completely ignoring reality.
If this is the approach Sony takes - and they largely did for the first 6 months of the machines life - they won't penetrate any significant portion of the market. Thankfully, they're trying to meet it in the areas that most of the market for a games machine want - games and fun! That's largely why the Wii is kicking ass, because the market loves what it offers. That's why the 360 kicked butt over the PS3 in 2007, and 2008 is much closer (certainly it's not a "win" for either the PS3 or 360, though Wii owners may chuckle at that).
Anyway, it's not some funk new idea. Look at Iriver or Creative and Sony's MP3 players, offering more functionality early on in their life (video before Gen 5.5 Ipods), games, customisation, all sorts of stuff. But the Ipod reigned supreme.
Does the 360 "need" BR? In my mind, no, of course not, so long as it continues to offer and expand its huge library of top notch games - and by all objective measures, that's where it's still on top. My concern for the 360 (somewhat alleviated over E3) is that it will lose focus on this and start with the bullet-point lists. Thankfully, as a 360-only owner, I still have more games to play than time to play them, so I'm comfortable with what's there.