Because Sony is retarded like that. Hence the following youtube video: http://www.youtube.com/watch?v=KfmBzllkbUM
I watched the start of the video. I don't think that's very fair to the PS3. At least its hardware is the usual level of reliability that we would expect from consumer electronics, unlike the Xbox 360, with its comical, oversize AC adapter (this is what "Xbox huge" means, people), disc-scratching problems, and general failure problems. Microsoft has had major problems with account deletion (making excuses about their deletion account policies which is irrelevant after the fact to the people who would and could have never logically expected such ridiculous policies), the same as they always have with anything connected to MSN (Hotmail, Passport or whatever they are calling it this week, etc.). Also, they have had major issues with Xbox Live downtime.
All the "important" features of the PS3 are in every SKU--even the lowest ones. (A PS2, which has near-perfect PS1 compatibility also, is under $100 at this point so for those who want it, I don't think it's a major loss not to be included in the PS3. Cost is the reason that most consoles over history have not had backward compatibility with their predecessors, and the removal of it in the PS3 is for the same reason.) In contrast, the Xbox 360 low SKUs have been significantly crippled.
It may not have made business sense to include a Blu-Ray player in the PS3 (though maybe it did? At least Blu-Ray did win out over HD DVD, and it was overall the superior format), but the PS3 actually does make an excellent Blu-Ray player as well as DVD player (this was not the case of the PS2's integrated player). The deinterlacing and upscaling in the PS3 rivals that of one of the leading set-top video processors, the DVDO VP50, and it features three types of digital noise reduction. It is great as a Blu-Ray player because of the frequent updates that support new features in the Blu-Ray spec.
My reaction to its original $600 price was probably the same shock as most people. I knew Sony said it would be "expensive", but I didn't expect
that. But, the price came down, and I have to give credit for what they did right.