PS3 Controller and Price Specs

Last night while watching the Sony Conference I only reported on the price and release date of the console. This was well because of the overwhelming alarm I felt upon hearing of the figures. And after cooling off, much to my surprise it would seem there some other underlining problems with the Playstation 3.
As some of you do or do not know, the PS3 controller resembles that exactly of its PS2 predecessor, however it has lost some functionality in place of another. The ever popular Vibration feature has been removed from the controller because it conflicted with the new motion censor which has been used in some PC related controllers. The Wii-Wanna-Be controller falls ever so short of Nintendo's Innovation and awesome level. Despite that the game displayed using the function (Warhawk) did look really fun, even though I can't imagine much use for it other than flying games.
Now in terms of the Pricing, as I said the first plan is for $499 with a 20GB HDD. It has recently come to my attention that a larger hard drive is not all the $499 dollar console is lacking. As well as a 40GB HDD decrease it will also lack Memory Card Support, the built in Wifi feature, as well as the HDMI Output. Now for those of you that don't know HDMI is required for the HD which Sony was bragging so much about, and yet the one console is lacking the feature?
If you ask me Sony is digging it's own grave, following the same path as Microsoft and charging more than that are?