That house is awesome. I think there are probably some great deals in the high end right now. Unfortunately they are all still out of my league, even at 30% off.
BTW, look at this place for a cool 4.3M in Hollywood. Moby is apparently angling to buy it. That could be a great investment actually, 3 acres in that location. When (or if?) things turn around, he might make some money on that.