If I were you I would definitely get PS3! However I would wait until the 80GB models roll out later this year. They are replacing the current 40GB models. You will get the larger HD and it will include a DS3 for the same price.
I don't mind the installs at all. Like many have said installing a new hard drive is very easy. If the install means faster load times during the game then I see no problem with it.
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