Starcraft, I hope you realize that the 360 is going to lose to the PS3 in the jrpg department. Even with the original creator of final fantasy making games like blue dragon and lost odyssey, none of these games have been AAA or have had strong sales. On the other hand, PS3 has 2 FFXIII games on the way which most likely will be AAA.
You've made some good points, but the RROD can't be ignored. At least for some gamers, console reliability is a HUGE factor when choosing a console. Maybe the new 360's will be better?
And I doubt Killzone 2 will suck. We'll have to see if the story is any good, but it's obvious that the graphics and physics are superior to anything on the 360.