They haven't so much back-pedaled as prioritized gaming above media functionality for launch. All those missing features will come in future updates.
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Yeah, I know they'll be patching some things in, but those features were not emphasized at all during the marketing blitz. It has been all about gaming.
They were trying to push Bluray as a media format when the PS3 was released, having the PS3 act as a media center meant more people would buy Bluray movies.
This time, HD-DVD is dead, and everything in your living room already plays streaming media, so it's not much of a selling point.