The 20gb one was $500. But even if you take the 60gb price, it's still a better deal than the 360. 1080p available at launch. Full backwards compatibility. Bigger hdd. Will have more games in the long run. Same total price.
On a very loosely related note, any chance you want to sell that 60gb PS3? The only ones I can find on eBay are refurbished, and the 80gb's emulator doesn't support some of my games