Because its cheaper. And regarding the backward compatibility issue with PS/PS2 games, some people can do away without that or perhaps they have PS2 already. Well, i guess these could be few of the many reasons to buy the new 40GB.

As for me, White PS3 40GB seems tempting. Planning to get one with white controller as well.

P/S: the new PS2 is tempting as well ( Of course im saying the white version lol). I plan to buy that as well but does anybody know whether its possible to buy first and then send to shop to be modded or wait for the modded version to be available sometime later? Btw, i can ask Q's bout modded console right? no breaking rules or whatsoever right?

:drooling over white PS3: yeah. how much you bought it man? from who?