Like he said the PS3 controller has been in development since 1994? I think the PS3 is going to be like mairsil said, just another cheap crippled gizmo.
There is no reason why the PS3 couldn't output HD through a "normal" AV cable. The only reason to bitch about the lack of HDMI on the budget version is for Blu-ray playback.
It can't output 1080p however, as this isn't supported by component, and if it includes DVI/HDMI then there's no point in a seperate HDMI port...
Just because a HDMI/DVI port is a part of a multi out that doesn't mean it doesn't support ICT - so long as it is fully HDCP compliant then this isn't a problem. I'm saying if Sony integrated HDMI/DVI into the multi out then there would be no need for the sperate HDMI port on the pricy model.