First of all, yes, I am a Nintendo gamer. I have been since the 8-bit days. I don't like to call myself a fanboy, there are too many negative connotations to that term. I don't bounce from board to board spouting "ZOMG P$3 suXX0rz". I do, however, think Sony seriously dropped the proverbial ball this generation.
Don't get me wrong, the PS3 is a serious piece of hardware. I don't know the exact numbers, but I'm sure it's dozens if not hundreds of times more powerful than the Wii. This is exactly its problem.
First and foremost in Sony's ball dropage is the Blu Ray. Its inclusion resulted in short supplies, launch delays, and a hugely inflated price. Blu Ray, again, is a fantastic piece of technology. However, HDTV penetration still isn't that high. No one without an HDTV will see the benefit. Also, consumers are wary of buying into the technology while the format war rages on. While Blu Ray gives Sony a high definition title of some sort, it just isn't needed at this time.
The main advantage over current generation DVD is the storage capacity. Okay, so we can have 50GB games now. And...? No game comes anywhere near that, and probably won't for at least a few years. They don't need it. Look at Gears of War: 4.7GB. And that game is beautiful. And while the Blu Ray drive offers better capacity and graphics, it is still a relatively new technology. The result: a 2x drive that gives snail-like loading times.
Leaving out Blu Ray could have cut $200 from the PS3's price. Hell, I would have been tempted to buy one at $300.
The Blu Ray also cost Sony delays... upwards of a year depending on the market. The delay cost Sony exclusives and gave Microsoft a yearlong head start.
So what should Sony have done? Slapped a current generation DVD drive in that puppy, ditched HDMI for component, and called it the PS2.5. Give us Blu Ray in 3 years when it will make a difference.