Wow, you're kidding, right?
The PS3 is indeed an impressive device, but it's still expensive by any consumer's standards and it does a ton of things the "average American consumer" has no interest in.
The number of DVD players in the US is vastly greater than the total number of video game consoles in the US and about two orders of magnitude greater than the number of PS3's.
In 2006, around 82% of American households had at least one DVD player, while in 2007 around 41% of American households had video game consoles.
You also seem to forget that HD DVD players are routinely being sold at under $200.