The PS3, in large part, sold because it was THE best blu ray player out there. At a time when games on the Sony were actively worse than any other platform (because the CBE was a mofo for third parties), the PS3 was heavily buoyed by it weirdly being one of the cheapest blu ray players out there. And the PS2 was a REALLY good DVD player which heavily contributed to its market dominance.
For people who already have an AVR and are used to doing all their own infrastructure, it matters less. For people who essentially plug one box into the one “good” port on their TV? When there is one 1k USD box that can only do games and one 1k USD box that does games and netflix and youtube and disney plus?
It might not be a huge deal in the long run (especially with TVs having a lot of this functionality built in) but it is a talking point with no good answers. And that impacts the idea of it being “an entry point”.