Look, its simple. Whatever you think of BR R/W speed vs DVD, etc. the facts are:
1) MS has a mandatory no install policy on 360, and used DVD which is familiar and has certain (not total) speed advantages over BR. The result, developers sometimes bitch about not being able to use an HDD and grumble. But that's how it works with the console. Result - no mandatory installs but sometimes worse pop-in, etc. vs PS3 games that install (e.g. GTA IV). MS allow optional installs so you can take advantage of an HDD if you want and reduce load times/pop-in.
2) Sony has no mandatory policy regarding HDD and every PS3 has an HDD. BR has certain (not total) advantages over DVD. The result, developers us the HDD whenever it suits them and sometimes consumers bitch about installs. Result - sometimes superior performance to 360 versions, sometimes not. Sometimes loading advantages, sometimes not.
I think the situation is crystal clear myself.
Just as most 360 owners seem to advocate having an HDD and buying a higher spec 360 I would advocate PS3 owners to get a bigger HDD or buy PS3 with the larger HDD.
Either way sometimes you win, sometimes you lose.
Try to be reasonable... its easier than you think...
