Ugly picture indeed, but what really boggles my mind is why they decided to include the SCART converter in the picture! Seems like they where opening a box and had no idea what's what and just said to themselves 'well, this looks important, lets arange it for a picture...'
Even more funny considering that the PS3 is being advertised as a console capable of HD gaming - which makes the included SCART obsolete... oooh the irony!