The Blu-Ray gives the PS3 a boost, which is something the 360 doesn't have when it comes to the graphics department. Which is why games like MGS4, wouldn't run properly on thw 360 without3 to 4 disks, andalso wouldn't be able tosuport some of Blu-ray's features which mightcause some glitches and bugs
Storage.
tonitorsi
Blu-ray in no way improves graphics. It allows you to store more game data but more game data doesnt make graphics better. The only way it could possibly help with graphics would be to store much much higher resolution texture files. Such high resolution texture files wouldn't work on the PS3s hardware anyway, the RSX isn't up to the job. So all in all, there is no benefit in using blu-ray except for more game content (but thats not better graphics), video and lossless audio.
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Anyway, overall in my opinion, the PS3 has the more dedicated and talented developers. I would love to see Guerilla Games work with the Xenos and see how they get on with USA and 48 stream processors etc. I'm sure they would produce something comparable to the likes of Killzone 2 and Uncharted 2 on the 360.
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