In my own completely worthless opinion, yes and no.
Even If they stripped out the BD player, media slots, HDMI, WLAN, BT, and slapped in a 20gb drive and priced it at the same price point as the 360 it would still probably wouldn't sell like some would assume. It would sell more, but still the release timing, and not having any killer apps available, in my eye, is what kicks the Ps3 square in the nuts.