Nothing has been said about a HDD in PS3 yet AFAIK. Maybe they\'ll use a small 2.5" lap top HDD to conserve space. Toshiba is a big lap top HDD maker... Who knows? We\'ll have to see.
It\'s going to be fun next generation nonetheless. The Xbox2 will be powerful as well and will most likely utilise it\'s power better but if the Cell CPU is as powerful as they say AND with the Nvidia GPU I think that the PS3, power-wise, will be far ahead of the other consoles.
The GPU of the PS3 was the main thing I was worried about regarding the design of the PS3 but not anymore.