I very much doubt a 120GB version of the PS3 will cost more. HDs are cheap.
I'll be pretty frustrated if they implement more features with this "rumored" new SKU, however. I purchased my PS3 based on the knowledge that it was the best available tier with the most features and the largest HD. I don't want to go through the hassle of upgrading my system because Sony can't decided what direction they want to go in. I'd have built a gaming PC if that were the case.
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