I use my PS3 8 to 12 hours every day, and I hardly ever play games.
I have an original 60 GB model, but it's now been upgraded with a 500 GB, hybrid (still a spinning disk, but with supplemental flash memory as a read cache), 7200 RPM drive.
The PS3 has good (but not spectacular) DVD upscaling. It's loads BDs fast, and has the best compatibility rating for new discs (studios don't dare release titles without testing on the PS3). It handles BD audio perfectly, decoding the main track to LPCM, and still mixing in the secondary audio at full quality. The newer models can even bitstream, and switch on the fly to LPCM when mixing is called for. Sony is also upgrading the system for 3D BD support very soon (if you're into that kind of thing).