Looks like it's Rumors Come True day. Sony Europe officially confirmed that the long-rumored low-end PlayStation 3 model will be released in EU territories on Wednesday, October 10.

The new model of PlayStation 3 will carry a lower-than-ever price tag of €400, but brings with it some caveats: backwards compatibility with PlayStation 2 titles has been completely stripped away, the number of USB ports has been cut down to two, and the slots for Compact Flash, Memory Stick, and SD Cards have been removed.
http://blog.wired.com/games/2007/10/...ficial-40.html

That's a lot of things removed, although I guess only backwards compatibility is a feature that would be considered essential.