This article says that the PS3 20GB model is still in production. Sony says the reason you can't find them around is because retailers don't want them. They have a higher demand for the 60GB version.
Speculation: Really? Are you sure that retailer aren't offered incentives to carry more 60GB models because it saves Sony money. Why wouldn't a retailer want to carry a lower priced item capable of selling faster, generating more profit for them. Most likely, Sony doesn't allow any room for retailer profits in the 20GB model. Therefore, retailers shy away from it because they don't receive any money unlike the 60GB version.
http://www.joystiq.com/2007/03/14/rumor...-20gb-ps3-and-euro-backward-compatibil
Speculation: Really? Are you sure that retailer aren't offered incentives to carry more 60GB models because it saves Sony money. Why wouldn't a retailer want to carry a lower priced item capable of selling faster, generating more profit for them. Most likely, Sony doesn't allow any room for retailer profits in the 20GB model. Therefore, retailers shy away from it because they don't receive any money unlike the 60GB version.
http://www.joystiq.com/2007/03/14/rumor...-20gb-ps3-and-euro-backward-compatibil