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The fact that it is even in the running is impressive.  No 360 exclusive in the last couple years has really challenged a PS3 exclusive then a multi-plat comes along and changes everything and shows what the 360 is capable of.  Crytek has done something deserving of praise.  I honestly thought the 360 had reached its limit but Crytek changed my mind.  The game looks great.

I haven't played Killzone 3 and probably won't but I think it's the graphics king so far.  I put it above God of War 3 simply because it's a much larger environment and I'm more impressed with the amount of action going on.  It's just so pretty.