X360 rules!!!:rock: :rock: Blows the rest away as far as functionality. Plus try getting Halo 3 on a PS3...NOT!
I use my X360 as a media extender for my Windows Media Center. I can stream audio, video, and TV through my X360. If you have a thumb drive full of MP3's, just plug it in to your X360 and pipe it through your home theater. I can download high def movies via XBox live. HD-DVD add-on is like $180. I also have the Pioneer 5.1 surround for the X360...Comes with tuner. With Media Center I can use my PC as a DVR to record TV like Tivo, but it is much better. All content recorded can be streamed to my X360 for viewing on TV. All these extras do require some configuration and setup (not for the technically inept).
The early X360's had heat issues and you can't mount them in a cabinet or entertainment center. The newer ones have better cooling. I've had mine for a year with no problems. It sits out in the open on a table. PS3 had almost a third of their consoles that were DOA when they were first released. Plus Sony is pretty good at screwing their customers (not that Microsoft hasn't had problems, Sony is just better at screwing).
-Muzzy