mmm, the PS3 isn't looking so expensive now TBH (and I'm a LONG way from a sony fanboy)
Lets compare the two for a second (and assume you have an interest in homebrew) :
PS3 - 20gb (so as to keep the comparison fair) - $499
ps3 Total = $499Xbox 360 Premium - $399
Now add the HD-DVD at it's projected cost - $199
Add to that the cost of running homebrew (which allegedly comes as std with the PS3) - $99 (although ongoing i'll add it for 1 year)
xbox360 Total = $697(!)Even if you go up to the 60gb ps3 model the 360 is ~$100 more expensive!
IF all that proves to be true it's a HUGE blow for MS's ability to compete on price, even the console + HD-DVD price is higher than the ps3 and that will hand Sony this generation as well
Also the ps3 is coming with wifi as std (another $100 accessory on the 360) - it's looking more and more like the ps3 will be a fairly sensible purchase, although I won't be buying one as there's no way on earth I trust Sony not to screw me over when thay have access to my network (and net connection) given their recent dodgy dealings.
What does the HD-DVD drive have to do with this? Most of the people that buy the 360 will have no interest in this, so you can take that $99 off the price as well.