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Has everyone forgot that the Cell can produce graphics on its' own, without any help from any GPU:

http://www.youtube.com/watch?v=oLte5f34ya8
http://www.youtube.com/watch?v=zKqZKXwop5E&feature=related

IBM IRT, did all that with the Cell processor alone.

http://www.alphaworks.ibm.com/tech/irt

So while the Xenon (Xenos?) may be slightly better than the RSX, the RSX is still pretty damn close in terms of graphical output, and team that with the Cell's capabilities, and the PS3's graphics > 360's graphics

But last time I checked, wasn't the RSX faster than the 360s GPU? I thought 550 MHz > 500 MHz