I have respect for PS1 and PS2, but Sony really dropped the ball with the PS3. Still love my PS2 though. Never had respect for the huegbox though.
As for hi-def video, it's probably possible, but not in some countries (*cough* US *cough*). If you compare it to other countries, the internet here in the US is absolutely sluggish. In the US, the average internet speed is around 2 Mbps. Australia, about the same. Even in Canada it's faster, 7 Mbps. However, Japan's average internet speed is 61 Mbps, which used to be fastest in the world about a year ago. That's about 7.5 MB per second, 450 MB per minute, 27 GB per hour; easily enough. Of course, eastern Europe has the fastest internet speeds now because they're just now adopting the internet. Later adoption of internet = faster speeds.
Due to Amerika-byou though, it will never happen here. Corrupt government, corporate greed, etc. I bet in another decade, the US will be up to maybe 4 Mbps while everyone else has speeds that can be measured in Gbps.