The cheapest price I've personally found is around $80 at Newegg with free shipping (and for me, no tax).
You would think that Sony would deeply discount the things, especially since they want to push digital distribution (not to mention Playstation Plus memberships with the free games they're now giving away). But they remain prohibitively expensive.
I finally just pulled the trigger on one, justifying it by saying that while I'm spending the cost of two games to get it, I'm getting six games on PS+ for free, most of which still retail in the $30-40 range. And that list will expand over time.
Brian