Blu-ray was made specifically for the PS3.

And it will do everything any other player will do. Plus you can play madden, fifa, call of duty, fallout 3, and resistance on it. No other blu-ray player offer this option.

I think there is no contest in the blu-ray market. The PS3 is also sold at a huge loss by sony. I think it has something like 500 - 800 dollars worth of hardware in it(at the cost price point for Sony) Plus almost every gaming system is sold at cost in stores. The money is made on the connectors, controller, and games. Not on the system itself. Companies view games system as an investment that will pay them back over time. Not as an immediate money maker.
In other words. Get the cheapest PS3 you can find. Don't worry about HD space you can use external drives and even upgrade the drive yourself for a fraction of the price difference.