Funny how I didn't pay over $650, I didn't even pay over $500 even after tax and warranty. A lot of the things you added were things you don't need to buy like the wireless adapter, HD-DVD player, 12-month Live Gold Membership(which is only $50). Why would you buy another HDD when the premium 360 comes with one?
I'm not saying you need to buy it to play games, what I am bringing up is the fact that PS3 offers much more than the Xbox360 does and to match it, you would have to dish out more cash.
Let's do a Versus: PS3 vs Xbox360
60GB HDD vs 20GB HDD
Built-in Wireless vs Add-on Wireless
Built-in Blu-Ray (approx. $1,000) vs Add-on HD-DVD (approx. $600)
Free Online vs Paid Online ($69.99 http://www.circuitcity.com/ccd/productDetail.do?oid=137833&vendor=MSN&offermsn=yes&WT.mc_n=5&WT.mc_t=U&cm_ven=PORTAL&cm_cat=MSN&cm_pla=DATAFEED->PRODUCTS&cm_ite=1%20PRODUCT&cm_keycode=5)
...and I just calculated a single year of online which is actually more like a minimum of 3 years.
I guess the reason being you didn't pay anything over $500 is obvious: You never really got a lot out of whatever you paid compared to what the PS3 is coming out with.
Read between the lines: It says value all over it!