I've gone through 4 PS1s - thankfully I had the foresight to get the extended warranty (never did that for any other system though). Did the same with my PS2, though that hasn't been used nearly as much.
While it's $600, it's still less than a stand alone bluray player. Not that it matters, but it's just a point of observation. And while we'd like to think our money goes far, I don't think there are any electronics that have anything past 1 year parts, 1 year labor (and we're generally lucky to get 1 year parts, 3-6 months labor).
It's really odd to see Sony taking such a beating. They've, until recently, been a pretty savvy company (more or less). This and the battery thing, it's amazing. I don't know how any company bounces back from those two disastrous outings.
On top of that - I don't recall any killer apps being out for the PS2 at launch - but that didn't prevent it from being exceedingly rare, did it?
As an aside, I wonder what it's like to be one of those schmucks who paid several thousand dollars for a PS3 only to find it sitting on a vast number of shelves a few weeks later. 😀