Also of particular interest - Kutaragi says that the 60 GB HD must be present to play PS3 games (though that doesn't mean it would be needed to emulate PS1/2).

Many are speculating that Sony could pull a fast one and make people buy the HD peripheral in order to provide the needed functionality for the console - similar to X-Box forcing users to buy the DVD kit...but does anyone really think Sony would be that stupid to not include the HD in the package?