Have both setup:
Advantage of PS3 -
Proggressive scan output on EVERY game. Big difference in picture quality on most hdtvs.
UPscaling support like a dvd upscaled (this doesn't look as good as playing without on my tv better to turn off, although you can experiment it might look better on different games.)
No need to buy memory cards
Uses PS3 wireless pads.
HDMI Video out option.
'Smoothing'
Advantages for PS2-
Cheat device support
HDLoader support. (faster loading)
Hackable.
Can move memory card data to different PS2s easily.
Completely 100% compatible.
If you have xploader hdtv loader (and generous zoom options on your hdtv) some titles can output in almost native 720p, although it usually distorts alot.
PS3 takes the cake as the better option, unless you want to cheat/hack the system with unofficial software. My 60gb hasn't broken on me yet, its still chugging along nicely.
