Great show once again guys. I always look forward to a new CAGcast.
Re: PS3 launch should've been 2007. I agree, unfortunately they just couldn't afford to be last. Their hand was forced. 360 already made major headway in the US (arguably the largest of the three big markets right now) and sitting out another Christmas would handed Microsoft an even bigger lead -- and yes, that's even with PS3s being in short supply and it being more of a "token" launch anyway. It also would've pissed off third-party publishers who count on holiday software sales and had projects in the pipeline for PS3 all year. Already Sony has lost some key exclusives -- they can't afford to lose more.
Second thing forcing their hand is Nintendo. While Sony America might not consider them much competition, in Japan it's a different story. Sony already lowered the price of PS3 there in order to better compete with the lower-priced Wii. Had Nintendo not been ready with Wii Sony might've had some room to delay.
Now their obstacle is the PR battle with Nintendo and Microsoft. They need to nail down a Q1/Q2 lineup, talk software, talk up the advantages of the PlayStation Network and get some more positive buzz going. They need a community figurehead a la Major Nelson or Reggie to be there and at least put on the act that they're listening to fans. Right now they're coming off a string of so much bad press that it is going to be difficult to get away from it. I think they're just hoping that Wii becomes a gimmick with no life in it and that the public embraces 1080p high-def gaming and Blu-Ray movies, but I dunno how quick that'll happen (if it does this year). They were hoping that the public was as hungry for Blu-Ray as they were for DVD when PS2 came out...and guess what? Not happening.
Anyway, great 'cast and thanks for the shout-out Cheapy and Wombat.

Drop me an XBL friend request and I'll add y'all to my list and we'll play some Gears sometime (I am a very easy target, trust me).