Never said it was the sole reason. I said it was a contributing reason.
Howard, I respect your intelligence and the contributions you've made and continue to make, but I think you are ignoring the logistics of retail. I'm pretty certain I know why people bought the crap I sold them, I've done it for years.
When the PS3 launched, I sold a ton of em. Not because it was a game system, but because it was a high quality Blu-Ray player that was $400 cheaper than the available stand alone units. As far as the backwards compat went, the 60gb had hardware compatibility, thus the reason they were coveted, the other versions were software right up to the moment Sony removed it from the system.
As far as the secondary market being irrelevant, I once again have to disagree. With the advent of DLC, I'd say the secondary market is very relevant. Even though the console makers don't see the first sale dollars, each owner of the same disk ends up purchasing DLC since there is no way to transfer it. That means that a high margin, low overhead item gets resold each time the single disk changes hands. Even when a console changes hands, the new owner most likely will end up buying digital distribution games. Hardware is becoming a diminishing channel of income versus digital.