I made the same exact argument in my latest poll/discussion over at LC. Basically, Sony should follow the (DS-->DS Lite) and (PSP --> PSP Slim) models for reviving their hardware. I didn't say it there, but a PS3 revision seems to be the only intelligent option for Sony to pursue.
But do you think they actually will? In this case, the PS3 Slim version will have to come with a corollary price cut (and a singular SKU)..and does anybody around here think they'll do that instead of an imaginary arms race with MS?
Sony may not have ever had a chance against Nintendo this generation, but I assert right here and now that it is their focus on competing with Microsoft that will be her downfall. Sony needs to realign, restrategize, and focus on what's working (singular revised SKUs with new colors at a great price with numerous titles that Japanese people love). Not this "my HDD is bigger than yours" bullshit.