Sony didn't fuck up with the bluray inclusion, they fucked up when they screwed over developers by not getting them dev kits in a remotely reasonable time before launch. Devs got fucked hard and if the PS3 had a large enough library of exclusives at this point then the price discrepancy between the PS3 and 360 would be an even lesser issue.
The problem everyone has with the price is that you shell it out and there's only a small handful of unique games to pick up. There's poorly ported cross platform shit from Ubi and EA like always (Wii and Gamecube owners know all too well how little EA and Ubi care about cross platform ports), but then there's only a few exclusives and even then most of them have problems (Motorstorm's load times and lack of hard drive support in addition to its nerfed feature set pre-patch).
We're finally seeing more stuff trickle in, but the first year drought is still nearly as bad as the Saturn's and N64's. At least the PS3 is pretty damn functional as a media center piece (which is why a bulk of them are probably selling).