Reeves not in touch with America?
Reeves comments just do not tally with reality. To be honest I think he was trying to deflect the discussion away from his decision to go with the 'enhanced value pack' rather than dropping the price. Sure packaging two games and an extra controller effectively means that the price of the PS3 in the package is lower, but he's still charging a hell of a lot for the whole unit.
It would be far more honest for him to simply ship a core unit in Europe with no games and a single controller for 350(pounds UK, and whatever the equivalent Euro price is).
Regarding the US, I'll believe what Reeves says when and if I see it. For a start, 20GB plus a game minus the emotion engine does not equate to $100 more. Right now, the core package (60GB model) and the 80GB model are the two price points, but the fundamental price point in the US has shifted to $499. That is where the sales are, and that's where the price will remain. I have seen articles suggesting that a 60GB revised model without the EE is coming to the US. Not sure which way that is going, but I seriously doubt that Sony will allow the entry point to PS3 to drift back up by $100, then again they have done suicidally stupid things before with PS3...
If I had to guess, I would guess that when the old 60GB models go away, a new one will spring up in it's place, alternately Sony will do as they have with PSP, and offer a core unit with just the controller and PS3, and various value packs with game(s), movie(s) and/or controllers bundled to add value, maintaining two price points. Anything else simply makes no sense.