Tiff,
I understand your rose tinted PS glasses!
While I suspect the PS3 will dominate Asia, the XBOX360 (based on what the XBOX has achieved in the rest of world) will probably be the dominant hardware in Europe and USA.
The question of games has took a HUGE swing since the take off of the XBOX, as regarding most games now being mutli platform. TBH, the PS probably only has as many exclusive titles as the MS platform now.
IMHO, Sony had it easy in the latest round of consoles. Maybe this would of been all different if the Dreamcast hadnt been shelved...... which fortunately is not a problem MS should encounter (they have more money to throw at this scene than Sony and Nintendo put together).
Perhaps this is like saying Cossies are better than Scoob's (and we all know how untrue that is lol)...... but at the end of the day, like these car marques, you have to own both to appreciate the good and the bad in both!