Seriously, this is what I'd expect from the bottom end model.
40GB HDD is the best feature on it. Apart from that it's got no backwards compatibility, at all. Not just poor backwards compatibility, you get a message saying 'this console is not compatible with PS2 format games' when you try to play them.
It uses leftover PS1/2 AV cables instead of coming packaged with any sort of HD cables. The charger cable for the controller is clearly something they've taken off a USB HDD designed to be used on a desktop PC. It's about 30cm long so you can't use it while playing.
It doesn't even come with an ethernet cable*. The controller feels like it's a cheap knock-off of the PS2 Dual Shock 2 controllers. At first I thought that was just the missing rumble components effecting the weight, but then I got out a PS2 controller and compared them directly. The SIXAXIS just feels worse in my hands.
I can understand being desperate to cut costs back on these things, but damn, I spent around $80 on cables. It would only have cost them a few dollars per unit to include them.
Overall I actually feel bad that I've given money to the people who are responsible for this thing.
On the plus side, Ratchet and Clank is a pretty good game. =P
*Although this is a good thing, it made me dig up my XBOX 360 box and realize that the one packaged in with my XBOX 360 is freaking huge.