Problem is not it looks ugly.
Problem is it is not sexy.
It's ok.
They even have to say it's lighter, because at first glance the smaller does not pop out that much.
Imagine waking up to a Sony announcement, having an orgasm looking at the beautifull chinese made, japanese designed console selling at a good price...
Yep, instead you have this bastard design (small is not long and flat, small is Apple tv, Ouya etc...hasn't Sony seen people bitching about WiiU too elongated form factor???), the not so great price, the looming of WiiU, and the chinese ripping apart manufactures building japanese stuff.