agreed, i saw some deals for around 200 recently also. Personally i'm planning to get a ps3 as my blue ray player.
Blu ray players really are starting to come down though. There is one at bestbuy a panasonic BD-35K for $250. Thats not too terrible and its supposed to be really good. It got cnet editor award for having good video and audio and it does the upconversion for standard dvd.
Yeah that one still seems to be the best all around as far as features and all. Some people just want a blu ray player and that would make the ps3 mostly a waste. I'd go for the ps3 if i would use it for all the other stuff i can do with it but i probably wouldn't. I'm not much of a gamer