Additional notes:
The PSWii controller doesn't have the same functionality as a Wiimote. Where the Wii controller senses every slight movement, every twitch and turn and recognizes how fast or slow or what direction you're swinging, the PS3 controller only recognizes that it's being tilted. Instead of swinging a sword or aiming a gun, you're playing Kirby Tilt 'n' Tumble.
The $500 (basic) model also lacks Wifi support, Memory Stick/SD card support, and HDMI support.