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bigjon said:
For me, The PS3 and the Wii really do not compete. I preferr some game experiances on the PS3 better (COD4, GT, Oblivion.. would suck on Wii). However I do prefer the Wii for many genres... there is just little crossover. The only Genre that I really battle over is the Sports genre. I went with Wii for PES, but I am leaning to Madden for PS3.

The only thing they truly compete for is a share of my gaming budget.

Your last sentence Bigjon is the answer.  The PS3 and the Wii compete for comsumer dollars, no matter what you might wnat to believe.  Joe Blow has 100$ to spend on video games.  That money can be spent on one of the various platforms.  both the PS3 and the Wii are part of that list so they are competing, end of story.