Depends!

Without knowing your HT setup is hard to say if it's the "right" choice for you.

If you have only a HDTV with no AV Receiver/speakers (only speaker from your tv) then it is a good option, (see pros cons below).

If you have a HDTV and AV receiver with HDMI then yes you will get both hidef video and audio and it's a good choice, for now.

If you have a AV Receiver without HDMI input and 5.1/7.1 speaker set, then I personally would say it's not a good option. You will have to connect the PS3 HDMI to your TV for the video and PS3 optical to your receiver for the (non hidef) audio. With this setup you can only see hidef video but you will miss the hidef audio (DTS-HD MA and DTS-HD HR etc). With the lastest firmware 2.30, PS3 can bitstream DTS-HD MA to your receiver however your receiver will produce only DTS core (not the true hidef audio). The better way to get full hidef audio (and video) is to get a standalone blu-ray player that has 5.1 or 7.1 multichannel analog output and you can connect to your non-hdmi receiver to get hidef audio.

PS3 Pros and Cons

Pros
- The first Profile 2 blu-ray player
- Fast loading time, as fast as loading DVD (standalone suffers from this)
- 8 Cells core for future use
- Plays BD-ROM (pressed blu-ray movie), BD-R/RE, BD-R/RE DL
- Plays and upconvert DVD, plays CDs
- Plays PS3 and PS2 games (some models)
- internal hdd is upgradable with SATA notebook hdd (320GB and up).
- can install Linux separately
- USB inputs: plug in your external 1TB hdd formated in FAT32 for more storage space, 32GB USB flash drive, mouse, keyboard, webcam etc
- Has CF, SD, Mini SD, Memory Stick if Blu-ray is dead replaced by Flash!
- Plays DivX, XVid, mp3 etc etc for the enthusiast!
- Wireless and wired LAN for video streaming over network (as in Debro's post), act as media server
- PSP connection
- Browse internet, chat, open office excel, word etc (linux)
- bla bla, basically it's a mini PC

Cons
- A game console, not a standalone player (user preference)
- No display led (to display HH:MM:SS of running movie etc)
- Doesn't have multichannel analog input
- no rumble on the controller
- fan noise (some model)
- external hdd only formated in FAT32, doesn't support NTSF
- Doesn't play MKV
- It's a Sony?