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The 360 is fully capable of putting out games that look as beautiful as the PS3. Just watch some Alan Wake footage or get ready for some Halo:Reach footage in the future. Enough of the X console is better than X console because this bush is in the corner. Both consoles are pretty much on an even plain when it comes to graphics. Yes Uncharted 2 and Killzone 2 are the two top dogs in graphics at the moment, but as I said Alan Wake and Halo:Reach will have something to say about that.
Second of all when the PS3 does graphics the PC isn't capable of then we can discuss throwing away the DVD medium. You guys realize Crysis is on a DVD right? Switching discs (if needed for a game) is not tedious or a deal breaker. If it is either of those to someone choosing between consoles then they need to see a psychiatrist.

Last Comment : Lets take into account that the studios working on these games may have better artistic talent than others. Its not a coincidence that Epic's Gears of War using the UE3 engine looks better than Lost Oddyssey's UE3 engine graphics. Graphics don't create themselves and from what I see my in Computer Graphics classes in school (my major) there are alot of people who don't have the talent to create a good looking game.