When the PS3 was shown last year, there were white, grey (gray) and black versions of it, to tie in with the planned colours (colors) for PSP. But for that to make sense asthetically they would really have to be made to the same ceramic looking plastic that PSP, DS Lite, Revolution, Macs and iPods are made with. What we saw though wasn' t like that.
I bring this point up because Revolution from what we know, is by far nicest looking of the 3 consoles and DS Lite has gone that way (like iPods) and so it would make sense for Sony to follow suit.
Nintendo and Sony MAY be very adept at minimizing the size of their technology, thus minimizing production costs, ...but Blu-Ray alone (remembering it' s still in it' s infancy and taking into account how big Blu-Ray dedicated players are) would take up half that machine at least.
PS3' s biggest problem is heat (much more so than 360 had) and fans take up a lot of space. They might watercool it but it' d drive the costs up even more.
This is the PS3 dev-kit...
...and he is an accurate size comparison of last gen and this next gen consoles...
I don' t think PS3 will be getting any smaller before release, ...infact i' d be suprised if it didn' t increase in size slightly.
Perhaps i' ll just wait for PSthree instead...