I'll post some of the specs of the actual RSX versus the middle-range G80, the standard, not overclocked GeForce 8800 GTS that you can get for around $250, just for the sake for everyone to have corrects facts.
PS3 Reality Synthetizer
Core Clock: 550 MHz
Memory Clock: 650 MHz (1300 DDR)
Memory Bandwidth: 20.8 GB/sec
Shader Operations: 13,200 Operations/sec
Pixel Fill Rate: 8,800 MPixels/sec
Texture Fill Rate: 13,200 MTexels/sec
Vertex Operations: 1,100 MVertices/sec
Framebuffer: 512 MB (256 MB actual VRAM, 256 MB via CPU)
Memory Type: GDDR3
Memory Bus Type: 128 bit
DirectX Compliance: 9.0c
OpenGL Compliance: 2.0
PS/VS Version: 3.0/3.0
Process: 90 nm
Fragment Pipelines: 24
Vertex Pipelines: 8
Texture Units: 24
Raster Operators: 16
GeForce 8800 GTS
Core Clock: 500 MHz
Shader Clock: 1200 MHz
Memory Clock: 800 MHz (1600 DDR)
Memory Bandwidth: 64 GB/sec
Shader Operations: 153,600 Operations/sec
Pixel Fill Rate: 10,000 MPixels/sec
Texture Fill Rate: 12,000 MTexels/sec
Framebuffer: 320 or 640 MB
Memory Type: GDDR3
Memory Bus Type: 320 bit
DirectX Compliance: 10.0
OpenGL Compliance: 2.1
PS/VS Version: 4.0/4.0
Process: 90 nm
Shader Processors: 96 (from the original 128 on the high-end model)
Pipeline Layout: Scalar MADD+MUL
Texture Units: 24 (from the 32 of the high-end model)
Raster Operators: 20 (from the 24 of the high-end model)
The numbers in blue mean that in that aspect, the mentioned GPU is faster/better.
So yeah, I can't see HOW PC games can look better than PS3, that rumor is just out of this world 
