GAMES : Games are roughly equal on either console and it comes to down to the exclusives. I've tried a PS3 and Xbox side-by-side with similar games (Forza 2 and GT5 Prolugue) with both on HDMI. Guess what? That massive difference everyone has been telling you does not really exist. Some games are slighly better on the 'box, some are better on the PS3 and some are negligable. There are people on the forum with BOTH consoles and they'll confirm.
BLU RAY : Well that's pretty decent and could be a reason to buy for many. A few things to keep in mind : if you have a small TV, you're going to be hard pressed to notice a huge difference between DVD and BD - let alone upscaled DVD. Also bear in mind that not all BR players are the same. The PS3 BR was actually a great BR when it was launched - but towards late 2009it's performance is on par with entry level players from Samsung and Sony.
HOME ENTERTAINMENT : When it comes to media streaming, the PS3 is slightly below par of even the entry level machines. Slightly limited in what it can play and do, but not too bad if that's what you're looking for mainstream and value all in one box. If you've got a ton of movies, series and music in different codecs/contaiers and are a real media buff, your best bet is to go seperate if you can. As good a job as a PS3 can do, it's no match for a stand alone, despite what everyone tells you.
Listening to certain people on here, you'll be think the PS3 is *the* best when it comes to every function. Truth is, it isn't, and it's up to the indivual to determine what he currently has (equipment wise), what he will get in future (equipment wise), what he values most about the functions (BD? games? streaming?) and what games you prefer.
Great machine - but it does have limitations which should be told and may - or may not - be relevant