<<Then why does everybody insist on comparing prices?>>
Because all the arguments you can come up with are "can PS2 do this", "can PS2 do that", "can PS2 do blah blah"...
It's $299, sure, people pay the $299 for the gaming, not MP3 converting, not video capture, not installing Linux(gee what an idea). As for internet, there will be broadband or something, and it will play CDs, VCDs(possibly), and DVDs.