After playing around for another week now with the console and talking about the features so much, I think I can draw better conclusions about the xbox360 & PS3. If you're looking for an all round HD entertainment package then I would give it slightly to the PS3. If it's pure gaming you're after then it's 360 hands down.

Given the fact that M$ has just announced the Elite Pack, this will address the HD issues found with the original 360. The larger HDD is something they should have included from Day 1, but hey, at least they got there. I don't think upgrading right now would be a good idea. I think most people who early adopted will wait for the new 65nm chips to be installed before changing again. I thought they would have done that with this iteration of the console but why do that when you can bring out another version and make more money on a corporate level...And so the wheels turn. ;)