Ps3 has hdmi, does upscaling to 1080p.
PLUS, you get the games, sony are also going to start bringing out blu ray discs that have games and movies on the one disc, on top of that if you have a wireless network (i think you can hard wire it as well) you can play all your downloaded music, movies, tv shows and view all your pictures through the ps3 and one day (has been put off for a while now) there going to release a product called play tv, its a twin digital HD tuner with its own epg and records straight onto the ps3 hdd.
For $50 more than what you are budgeting you get a whole lot more than just a dvd player.