Straight from Sony: The 20GB PS3 will no longer be offered to retailers for sale in North America. The decision was made based on consumer and retail demand favoring "the 60GB model 10 to 1."
Dave Karraker of Sony America states, "At launch, we offered two separate models of PlayStation 3 to meet the diverse needs and interests of our PlayStation fan base. Initial retail demand in North America was upwards of ninety percent in favor of the 60GB SKU, so we manufactured and shipped-in accordingly. Due to the overwhelming demand for the 60GB model from both retailers and consumers, we have ceased offering the 20GB model here in North America. In addition to the larger internal hard drive, the 60GB PlayStation 3 features added storage media slots and built-in Wi-Fi not found in the 20GB system. Based on retailer and consumer feedback, we have decided to focus our current efforts on the more popular 60GB model."
This follows mounting evidence that the 20GB was on its way out the door at Best Buy and even the Sony Style store. And so we say goodbye to the PlayStation 3's 20GB model. Goodnight sweet Prince, we hardly knew ye.