Got any spare Laptop drives around the place? You can fit a standard 2.5" drive into a PS3, you can buy the drive cage from Mighty Ape or similar for around $18. 12GB (9GB useable) just isn't enough space on a PS3 realistically.
Well if he wants PlayTV then I wouldn't recommend anything under 500gb but it could be cheaper to get a 12gb and chuck a larger HDD in. Something to consider anyway. If he just wants it for Blu Ray and Media Streaming (lets face it the browser and TV on demand is terrible) then the 12gb would be fine.
Well in that case I would definitely recommend a larger HDD, I think the 12gb PS3's are targeted more towards parents who don't want to pay the big bucks for their kids and adults who want one of the best blu ray players on the market.
Also instead of buying games all the time you could be kept quite busy playing the included games in PS+.
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