1) How?
2) They are .... must have missed the memo.
3) Meaning?
Getting into this against my better judgement. Own both, but get a bit irritated by blinkered views of some of the 360 boys, so here goes:
1) Extremely low failure rate, bigger hard drive, blu-ray included, no monthly on-line subscriptions for the rest of your life, no need to purchase play & charge kits or batteries for your controllers, no need to purchase wireless network adapters (it's built in), a host of 3rd party peripherals will plug 'n play, e.g. virtually all logitech steering wheels vs expensive Microsoft propriety wheels, no need to purchase expensive mem sticks (use any USB stick), upgrade your hard drive by plugging in any SATA 2.5" drive vs expensive propriety MS hard drives for the 360, to name but a few

.
2) Can answer this in so many ways, but below just a small sample...
Biggest selling sandbox game GTA4 - check
Most successful racing franchise GT5 - check
Best FPS shooter 2007/8 COD4 - check
Best footy franchises FIFA 2008, Pes 2008 - check
Most successful stealth / FPS franchise - MGS - check
Most successful golf franchise - Tiger Woods series - check
Most successful fun golf franchise - Everybody's Golf - check
Most successful fighting franchise - Tekken - check
3) The PS3 is outselling the Xbox 360 in every major gaming territory. Lately including the USA. The Xbox 360 is only really performing well in territories labelled as "other" (South Africa, India), and a few other places where piracy is rife. The PS3 has sold more units in it's first year, than the PS2 did in it's first year. In the UK, from February, PS3 software sales now outstrips PS2 software sales. Week on week figures in the US shows the PS3 consistently outselling the Xbox 360. Yes, we do currently have a larger install base of 360's in ZA-land, and an active community. But the gaming world is far bigger than just us, and i.m.h.o. 360 owners in SA can be somewhat blinkered and think that all the 360 activity in our backyard represents what's happening in the rest of the gaming world, when clearly all evidence indicates otherwise. Furthermore the local PS3 community is very large, active and i.m.o. quite mature. There is no shortage of (free) on-line multi-player games in local PS3-land - the
COD4 registered on-line base is just one example.
That said, I don't think you can go wrong purchasing either console. Don't be misled by price-tags though, or the relative noise made by either community.
From my own gaming experience, one thing I can say about the hardware is that I am on my second Xbox 360. I still get read errors on my disks, including on GTA 4. My launch day PS3 has not had one problem. Has not ever had one read error. It runs like a well oiled machine. With my 360 I'm always holding my breath for the next read error, or other hardware failure. I have to fiddle with purchasing Live subscriptions via on-line 3rd parties and hope like hell that MS doesn't shut them out. Or I have to continue to commit credit card fraud to keep my Live experience alive and hope that MS doesn't ban me. I have to fiddle with work-arounds to get down-loadable content. No such issues with free local PSN support, including showing prices in good old ZAR.
/off my soap box.