PS3 is overpriced but...
That's not the reason you fall over piles of them walking into any electronics department or store.
As the stupidity of $2000 PS3 sales on eBay prove, if they want it bad enough people will pay anything.
No the reason PS3s don't sell is because the games are dull - there isn't a single title that isn't either a clone of something else, or hasn't been available on just about any gaming system over the last 5-10 years.
A couple of games have specced up graphics sure, but otherwise they're just uninspiring versions of things you can buy for systems costing a lot less money.
I have a PS3 - so far I've bought 1 game, and it's crap. I've played various demos of course, but not a single one has convinced me to rush down to Best Buy or Walmart to buy it.
The Blu-Ray thing, I don't know.. but I pay about $15-$30 per movie depending on how new or how good they are. I don't have that many, because there aren't that many movies worth buying for the sake of higher resolution viewing - but I'm happy with everything I've bought so far.
The PS3 could be a superb system - it's just you need something worthwhile to play on it, and I haven't seen anything in the pipeline that could even be considered close to a killer app.
My kids have a XBox 360 - and I can't say I'm all that impressed with that either - but at least you can find more than 12 titles in your average store - and at least most of the games you like have been updated for the new system.
None of the games I played on my PS2 have been updated. Consequently it seems a bit ludicrous that those very same PS2 games are pretty much all I use the PS3 for when I'm not watching movies.