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The fingerprints and how it reflected what was behind it. It only makes it look bigger and weird.
The convex shape of the system also makes it look bigger. I'm not sure why they'd want that - maybe they think the system should look as imposing as possible. They've certainly succeeded on that front - the system is about as inviting as a megaton bomb.
Other thoughts:
The thing looks worse in person than it does in the publicity shots. Maybe it looks better when it's vertical.
With this design Sony is making it clear they're banking everything on familiarity and brand loyalty. Maybe this is a brilliant marketing strategy, but it does nothing for me personally. A new console excites me because it's
new. Reusing the ps2 controller means there's one less thing about the console that I can get excited about. Same goes for the Spiderman logo.
...I really can't stand the Spiderman logo. The ps2 logo exuded confidence: it said 'we're so sure you will want this system, we don't even have to tell you it's name.' The ps3 logo says 'not only do we have to tell you the system's name to ensure sales, we have to use a font from a popular movie. We're that desperate.'
The touch-sensitive buttons sound cool, though.