Rumor: Sony PS3 Slim?

Word on the street has it that there is an all new Sony PS3 which supposedly sheds the rather fat and ugly image of the current model. This rumor could be true, considering Sony’s track record in slimming down their consoles – starting with the PSX to the PS2 Slim. Chances are the only modifications will be cosmetic in nature, so don’t expect the innards to deviate too far away from the true path. I must say that the probability of having a chip instead of software emulation to play PS2 games are next to impossible with this supposed new iteration, and would I dare venture that this slimmed down version will feature a new 160GB hard drive? What do you guys think?