LOL, didn't sony just add the last gen feature "rumble" to the PS3? Please don't be stupid, at the time Xbox 360 came out HDMI spec wern't finallized, neither was HD and blu-ray.
MS goal was to get 360 out before PS3 and while I do have issue with their shotty designs and console reliability, not having HDMI and have it added later is not as bad as Sony proclaming that rumble was "last gen" features only to have it added (just now for extra $50.00) or to tout their backward compatibility only to have it removed to save money.
My neighbor just got PS3 and he is not a hard core gamer (he only play sports games and blu-ray was the main selling feature) but he was totally shock that PS3 40gb did not play any of the PS2. His PS2 died and he was thinking PS3 40gb could also play PS2 games. He was confused because my "older" 60gb PS3 could play PS2 games but his "newer" model could not. I told him just buy a new PS2 ... they are dirt cheap anyway.
MS might have some bad mistake, but HDMI or HD exclusion is not one of them. 360 is a game machine and for that I think it is truly excel.