very VERY few people wanted or cared at the time that it came with a BD player and most people to today who own a PS3 have played very few if any BD movies.
For along time the PS3 was regarded as THE BEST Blu ray player you could buy even by many videophiles and AV magazines, websites, etc. EVEN when you dont consider the gaming aspect of the equation. Some STILL consider it the best. And it is the ONLY blu ray play I use and I use it frequently.
The PS3 hasn't JUST removed features. It has added some software features as well. It was the First to support 1080P Netflix streaming and it's still the only one that streams netflix in HD for free (The Wii is not HD, the Xbox you have to have a Gold Live subscription) You can still play online for free as well. You have to pay to play online with Xbox. It's free on the PC as well btw.
Also, the Xbox 360 had a 1 year head start on the PS3 and the HD-DVD vs Blu Ray war was not over yet. Add to that the PS3 has weak launch titles, AND sony failed to meet production goals. DESPITE all that, the PS3 still sold out and was very hard to find for quite a while. Clearly many people did not think it was "over priced" It was EXPENSIVE, for a console... not overpriced. It cost about $100 more than you average Blu Ray player at the time... so really you can look at it as you bought a blu ray player and got a console for $100... When it supported "Other OS" it was even MORE of a steal because you got this incredibly powerful computer for only $600... $600 in the PC world get's you crap.
And while I may be coming off as a Sony Fanboy... I am not... I own a PS3 and Xbox 360 and I play games almost exclusively on my PC! When I do game on a console it is usually on the Xbox unless the game is only availble on the PS3.