I've never used XBL so I can't say the PSN is better. I do enjoy the games on PSN, the online play is lag free, I like the fact that fewer people have mics, dedicated servers provide much larger online games, download speeds are good, friends support is good, trophies are a good improvement, and the Store has good content.
The thing I don't understand about XBL is why you have to pay $50 a year for peer to peer online games and friend support. Don't the free/silver users get everything else?
Thanks for the input, Jeff.