I think the PS3 is also... don't kill me for saying this... but too sophisticated for the masses. People just don't "get" Bluray or even what HD means in general. I've totally jumped onto the HD bandwagon over the summer, and I love BD. However, when I show people the difference between a movie in its DVD form and it's BD form, they don't really see the big deal. There's like a shoulder shrug and an "Ohhh, I guess that's cool." It's amazing how many people I know that own HDTVs that aren't using component cables for their DVD players and game consoles.
A friend of mine was playing Wii on a huge 50" HDTV and I told him he was a fool for not buying component cables. He told me that stuff didn't matter to him and it looked great on composite. I finally convinced him to purchase the cables and he was really happy with the way it looked. However, I know for a fact he's not using component for his DVDs. The odd thing is, he's usually a tech savy guy, and he's a huge movie buff, so to see someone like him not give a crap about HD, or BD is kind of strange. If he doesn't care, I highly doubt the masses give a shit. And it's not just movies, legacy titles look fantastic on PS3's with backwards compatibility, and the games are starting to arrive. PSN is also really good. The problem is, no one knows about that stuff.