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Far from it. The PS3 is pretty exempt from Blu Ray failing if you think about it. The console is a high demand product that will ship in the millions, which will consequently drive component costs down, and BD-Rom disc replication will always be active regardless of whether Blu Ray fails as a movie delivery format or not due to the fact all PS3 games are being manufactured to Blu Ray discs.
You seem to be forgetting one teeny-weeny factor - Sony cannot justify a $600 price point on games alone. If you think that the price is not a significant obstacle, then just wait until next year when they STILL cannot demonstrate why they are so much more expensive than X360. And as for Wii, it looks like they have a winner. Nothing we have seen so far can justify the PS3's price.