I don't see what's the fuss.
One of the two has the edge hardwarewise. That doesn't mean better looking games. How the technology is utilized and how well the hardware is controlled counts. I've seen many screen shots of 360, ps3 and pc games that only look slightly different. Maybe a slight bit of draw distance or texture clarity, most of them can be matched by just modifying the brightness, hue, contrast settings etc.
For example, they say that gears of war looks better on the PC. I have it for the pc and it looks great. I've played it on a 360 before and it still looks great. If it were as drastic as standard definition to HD then we could go scream about something.
This reminds me about dual vs. quad core cpus. Quad cores have the powerful advantage but very few apps can utilize its power so it only gives a slight performance boost. Until those extra cores are utilized, it doesn't count. (crysis is one of the exceptions)
Until that time, it's an even playing field, 360, PS3 and even the PC.
A good example is xbox vs ps2. Now that's something you can see.
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