What is the alternative, that Sony fills up warehouse after warehouse with units - risk of burglary - until they have a few million units to unload onto the desperately waiting market? In the mean time, Sony has less and less positive cash flow. If the PS3 fails to take the market shares they expect, it probably is the end of a decade long gaming career.
I thought all PS3 had to be pre-ordered, but of course it doesn't stop anyone from robbing, stabbing or whatever to get ahold of one from a legitimate buyer.
By the way, I'm too lazy and not interested to look up the RRP for PS3, but what are you supposed to pay in the USA? Over here, with 25% VAT, ridiculous exchange rates and whats not, $700 for a PS3 would be below the RRP. Here, people speak about paying 10000 SEK ($1400) for an imported NTSC PS3, and that would be a somewhat "fair" price.