My $300 PC with some upgrades is cheaper, and more powerful than a PS3. I'm reminded when the Captain of the Titanic threw out the extra life boats. He says something like, "The Titanic is the most advanced ship in the world!" It's also Sony's fault for not realizing HDMI TVs are a beast to figure out sometimes.
5 years later and HDMI TVs are still costly. It's the perfect merger of high prices for technology too advanced to work right.