I <3 PS3 mainly because unlike my Xbox it hasn't blown out four time. I also decided for slightly initial cost it does do alot, and realy long term savings entered my mind. (XBOX $299 (at the time), Wifi $60, Extra controller $50, gold subscription $60, $100 HD player (during the HD/Ray war it lost)) or PS3 ($399, mine came with an extra controller as a promo.
However, Sony will have to compete with Xbox on their level at some point or start to lose big titles and alienate gamers, and just promote Xbox through defacto marketing ("hey I got both systems, but only have Ps3 for GoW, everything else on Xbox) not a great way to get the system supported.
They also have to figure how to deal with the online service charges to producers (I will have to pay, but if provides better service, I guess I'll have to ante up, unless they do something really creative) and programming and tranfer issues. All the whining, bells and whistles won't save it forever if basic issue are not addressed.
Sony may have the hardware, but Xbox still seems to have the market (if just walking into a local store and sales in cross-platform titles is an indication). If Xobx can get the hardware updated (maybe my gen was just a lemon, but not sold on returning just yet) and if natal appeals to the causal user get even small fractions of real big boy market (Wii and DS) Ps3 could easily crash and burn.