Yeah, the PS3 outsold the 360 in its second and third weeks - but look at the Wii's results. 6 million in 3 months compared to just over 2 million in 3 months. PS3 sales are extremely lacklustre given the success of the PS2. The Wii outsold the 360 and PS3 put together in February (at least I think it was the Wii, might have been the DS).
I think the reason people are waiting for Sony's downfall is not because Sony is a tall poppy, but because they're arrogant. "The Next Generation doesn't start until we say it starts", "Nintendo doesn't know how to expand on its core gamer audience", "The PSP will take Nintendo's market", "Rumble is last generation, we don't need it" etc. Instead of keeping their mouths shut (like Nintendo, and to a much lesser extent, MS's 360 department), they insist on talking trash at every opportunity, and half the time it backfires on them.
They insist on treating the consumer like they're idiots as well - fake movie reviews, fake blogs, fake graffiti art, passing pre-rendered graphics off as real time, followed by apology after apology.
I love Sony cameras and audio equipment, but they are not the company they were in the 80's/90's. They were King of the hill, and unfortunately they still think they are and treat the consumer with contempt. This is why people are hoping the PS3 will fail - not to see Sony get cut down, but so they will hopefully gain some humility and respect for consumers instead of forcing their ideas onto us.