I really don't know. Live updates itself as well so the PSN may never catch up. At least, not this generation. Right now it's only real edge PSN has is that it's free. Believe me, that's a huge perk, but when I compare my experiences on both Live and the PSN, I really feel that this is a case where you get what you pay for.

headsets are coming with SOCOM, stop doubting Sony, they have a plan for our gaming needs, just have faith in the PS3

Well, we have it in America. I saw the bluetooth one at Walmart.

Like what does it have to catch up with? The only two things (that anyone cares about) that Live has that PSN does not is cross-game invites and cross-game chat. That's it. PSN has a video store, it has quality downloadable content, it has in-game messaging, it has 6x video chat, it has better multi-player (ie. larger games and more dedicated servers/less P2P), and in 4 months all new games will have Trophies and custom soundtracks. Also, the only game that is not seamlessly integrated with your PSN account is MGO, and that game has tons of other problems besides that (most of them related to Konami's greed). Also, Live will not be significantly improving (by that I mean adding stuff people will actually use vs. stuff like the "party" thing) in the near future and we know this because MS released the Fall update features. In contrast, we know PSN will be significantly improving in the near future because of Home and it is very likely that cross-game invites and chat will be added before the end of the year.

Now, before you start yelling at me, I'm not saying that the PSN is equal to Live now because it most certainly is not. However, it doesn't have that much farther to go before it is equal to Live and based on what we know about Live's upcoming update, MS isn't doing much to pull away from Sony in this regard.

When it earns it.

I would probably prefer PSN now if Sony had included a headset with the console. Without that one little thing, it will never pass Live in my eyes. Hopefully Sony will learn their lesson with the PS4 (or even start tossing in headsets with the PS3 at some point).

With Live getting a massive update in a few months, Sony will probably drop behind a little further in my eyes. PSN had made huge strides and is actually superior to Live in some respects (hosted servers, no fees), but it's still not as functional as Live IMO.

it will never be better

I think it is already better due to price/feature list all they need to do now is make in-game music and trophies mandatory.

It's nearly here! The one with Socom Confrontation looks to be the official one.

On topic- PSN is free, that's good enough for me even if it still has catching up to do in terms of features.