According to printouts from three separate Best Buys, the $499 20GB PS3 has been discontinued from store inventory. Sony itself admitted last week that retailers prefer the 60GB version at a 4:1 ratio over the 20GB edition, so Best Buy's unconfirmed choice to ditch the console would not be all that surprising.
Is this a major blow to Sony? That's a tough call. On one hand their console just jumped $100 in price. On the other, a lack of options may actually up-sell fence customers who might buy the console either way. (Because let's face it, neither $500 nor $600 are anywhere near the $299 pricepoint.)
Best Buy Done With PS3 20GB Model [joystiq]