Yep - and it is bullshit.
There're photo's of the PS3 and the Xbox360 in a newspaper [DOSE for you Canadian readers] that I picked up today. Both pics have people in them, and let's just say that the PS3 looks to be about the same size as the original PS2, maybe a touch bigger. As for the Xbox360, it actually looks smaller than the original Xbox, slimmer too.
Trying to find the pics online, but no luck so far. If anyone has a scanner and the May 20th issue of DOSE, they should scan and post.