Games will be made on Blu-Ray no matter what, you just wont get that 2 in 1 bonus like you did with the PS2. More specifically your new toy wont double as a movie player. But the question I raise is who cares??? DVD's are long from gone, and Blu-ray if it ever does become mainstream has a long time before that happens. Movies will be released on DVD for quite some years even after Blu-Ray becomes mainstream, just as VHS did when DVD came out.
ICT scares me though, forcing my 35+$ blu-ray disks to be restricted to 480p when they should be in 1080p is a bad bad deal. No wireless controllers and the fact you cannot upgrade your HDD is bogus, I guess they want you to pay for theirs but comon. HDMI port (which ties in with ICT) is a loss, but one I can take seeing as how I dont have and wont be able to afford an HDTV anytime soon.
For the 100$, I think im going to go with the more expensive one. I will only want one title at launch and would only even play 3-4 of the total titles announced for it. So I wont have to worry about whats not included in the "cheaper", if you can call it that, one. Not smart on Sonys part, not smart at all.