Here's the scoop:
20gb PS2...discontinued
60gb PS2..priced to $500 but thats because they've discontinued production
New option:
Buying the 80gb PS3, that comes with motorstorm...for $600
The catch:
They're taking out the PS2 empotion chipset...therefore making the PS3 only semi-compatible with SOME PS2 games and SOME PS1 games (like the xbox 360, they'll have downloadable compatability updates here and there). THAT'S what they're not telling the general public now. I work at a Game Crazy Store and this is what we have been told by our coporate office as well as our Sony representative that comes in every 2-3 months.
So if you want a PS3, don't care about 20 extra gb or motorstorm, and want to be able to play 99% of the PS2 and PS1 games (i say 99% cuz, like PS2, there's a few games from the previous system that dont work completely or at all; example: Mortal Kombat Trilogy for PS1 on a PS2; when you win, you cannot see endings or anything because it simply freezes, but 2 player Vs works fine).