Yeah, the size of it is fine. Though I'll probably get a terrabyte replacement HD off the bat since the PS3 wouldn't let you continue to get trophies on ported game saves, and I doubt 500 GB is gonna last until the end of the gen. The only reason I haven't picked one up yet is that I always wait a little bit (like half a year) before I get a new consoles, unless I'm feeling really impatient. It gives them time to work out hardware kinks, and get more games out. FFXIV is looking really good though since it's previous disaster, so it might be what pushed me to get a PS4 sooner than later.
The Playstation brand is something I know is going to deliver on the games front. I know the Uncharted's, Demon's Souls, Heavy Rain's, GOW's, Last of Us's, Valkyria Chronicle's, Little Big Planet's, ect, are going to come out. I know by the end of it's cycle I'll more than have gotten my money's worth. I just like to make sure enough's come out that I'll be entertained with it until they come out. PS3's launch was something (even though it's become my favorite gaming gen thanks in large part to it's exclusives as time went on) I'm glad I missed. Not just because of the price, but when something like Lair is one of your most hyped games...that's sad. Warhawk (I forget if it was launch, or just really close to launch) held up well though.