500 USD? Hahaha, you are all insane.
The DESR-5000 model (160Gb) costs 79,800yen, and the DESR-7000 model (250Gb) costs 99,800yen.
In other words, the 160Gb model costs aproximately... 740 USD, and the 250Gb version costs like 925 USD.
A 200 USD PC can do the same things the PSX can do? Stop lying to yourself.
$740/$925, that's even more ridiculous (and actually more than a 3DO!). They'll have to lower the price if they want to sell more than 3 of these things over here.
I never said anything about a $200 PC (although one of those Wal-Mart PC's would nearly fit the bill, as would a modded Xbox), but for $500 you could build something that had better performance, was more versatile, and looked better, doing everything the PSX could and then some, with the exception of playing PS2 games obviously (but then again, since you'd be saving so much money, you could purchase a PS2 if you wanted one as well).
For $925, you could build a PC that could completely destroy the PSX in all categories. So really, I don't see the appeal, other than 'ease of use', in which case, I think a DVD player, PVR, and PS2 combined would still be cheaper.