But dont you see?Ps3 ran linux quite well,it was advertized as an alternative game console :one that could be a serious computer too.With a keyboard and mouse and yellow dog linux it could do wonders.I even installed manually custom flash plugins (compile was horrible difficult to do).
ps3 is not only a game console.
PS2 also ran Linux, and that didn't go anywhere. Not sure if you were around in the 80's, but practically every single console of the time had some kind of "computer expansion" - none ever took off.
The problem is a console just isn't the first place people are going to go for a computer, especially when you can just buy an actual computer (even laptops) for the same money. There's simply no advantage unless you're a poor college student, and even most of those seem to opt for laptops. I won't even get started on the warranty issues.