That is true until the Cap Ayam blu-ray players from China hit the market.

it worse than cheapo dvd players.. 

http://www.hometheaterhifi.com/dvd-player-...ps3-fw-2.1.html

"Our cadence tests consist of very high detail test patterns. Some may call this a disadvantage for some players, but we've always used the same patterns for our tests, and we've seen a wide range of results regardless of price point. Nearly every player I test has no issues at all with some of the more basic tests, such as de-interlacing content with perfect 2-3 flags. Since even most inexpensive DVD players are flag based, this test is passed nearly 99% of the time.

The Sony PS3 continues to have extremely poor results in our SD DVD tests. The fact of the matter is, it just cannot lock onto a high resolution test pattern for any of our cadence tests. This is worse performance than we see with even sub-$50 players at your local big box store. One could argue that the player will probably do just fine with real world content since it probably doesn't have as high detail as our test patterns, but I think that argument would mainly come from those trying to justify their purchase. If I can get nearly every DVD player out there to pass these tests, why won't this one?

Like most game consoles, the PS3 is not what I would call a preferred video playback solution for standard DVDs. However, it is far and away one of the best Blu-ray players on the market today and an outstanding value for those looking to add HD support to their home theater system. But I would still recommend a higher quality stand alone DVD player for the more demanding home theater enthusiast."