I am a PS3 user. I would never have purchased a stand alone Blu-ray player or HD-DVD player, and still wouldn't. Neither of them offere/d enough to throw down hundreds of dollars ($200-$400+) for movies only. The fact that one format was a little cheaper or one loaded faster just wasn't enough to push me one way or another. In fact, the more the HD-DVD fans foamed at the mouth about how great their format was, the more I wanted to see Blu-ray win.
What changed EVERYTHING for me was the fact that the PS3 could eliminate TWO pieces of current hardware AND replaced one future piece of hardware. It was also capable of playing games (I have yet to use it for a game) and was "future proof" for the most part.
The PS3 replaced my non-upscaling DVD player, it replaced the PC I used to stream divx movies. It also replaced a future high definition movie player (Blu-ray or HD-DVD). My setup has never been more complete.
You could argue that the Xbox 360 with the additional HD-DVD player could do the same thing, but it just seemed like an afterthought from Microsoft (why didn't they just offer a HD-DVD version?)... and they really didn't have vested interest in the success of HD-DVD. When HD-DVD "fell" the choice was over.
In my opinion, the "Play" in PlayStation 3 is actually holding the system back. When I talk about how I use my PS3 as a media center, the first thing out of their mouth is "but I don't play games." Neither do I, but for $400, you get a DVD player, a high definition movie player, mini-computer/divx streaming system... along with all the other stuff.
I am a very happy PS3 owner.