They'd have to drop the price quite a bit for me to even consider it. $500 is still too expensive. In the history of consoles, I don't think a single machine that was priced significantly more than the competitors ever succeeded in the mainstream market (and the Playstation has never before been a machine for a "niche" market like the Neo-Geo was). I know it's not as insanely priced as the 3DO was back in the day, but when you can buy the "Premium" XBox 360 for a hundred dollars less than the cheapest PS3 model, you see how dumb their pricing structure is. And it's all because Sony is putting the established Playstation brand on the back of new DVD playback technology that is still in it's infancy and may or may not come out on top (remember Sony was the innovators behind the ill-fated Betamax format). You know how many DVD players I see hooked up to old, dinky televisions with crappy RCA cables? Outside the home theater enthusiasts, it doesn't seem like the average consumer was looking for a "higher quality" DVD player. And, personally, I never wanted a Blu-Ray player shoehorned into a game console. It's not a bonus - it's an albatross around its neck.
And where are the killers games for the PS3? As Howard pointed out, the high price point of the PS3 seems all the more crippling when there's such a lack of must-own games for it that are exclusive. Grand Theft Auto IV? Oops, it's being released for the XBox360 too. Metal Gear Solid 4? Yes, a PS3 exclusive though there has been some credible rumors that it may eventually find it's way onto the Xbox 360 to recoup production costs.
I really wanted to get a PS3 when first announced but I think it's a smack to the face of the people who helped put the underdog on top back in the mid-90's by showing incredible hubris with it's ridiculous pricing. A $100 price-drop might be too little, too late.