The $499 20GB PS3 package (only available in the states) is being axed by sony due to there being no demand. The 60GB package is outselling its cheaper sibling 10 to 1. This won’t affect European PS3 buyers as the 20GB version was never released there.
You’d think Sony would be wanting to keep as many options available as possible, seeing as how it is trailing the rest of the contenders in this round of the console wars. (From IGN.com.)