A few things:
Use PS3 Media Server as a DLNA streaming option and it does have a 360 profile for it so it you have a decent computer, it'd just convert the video and audio on the fly to a format that your 360 can handle and will play everything, the software also has the best subtitle support I've seen so far for conversions when it comes to MKV files.
Get rechargable batteries, they are both more cost effective and more eco friendly.
If the DVD is giving you that much trouble, don't stand it up, lay it down.
The 360 doesn't have as many exclusives on par with PS3 ones when it comes to core gaming, but it still has some that's worth your time if you've never had the 360 before, just do some research on the SP ones if you don't want to pay for Gold, even if you don't pay for Gold, your wife and her Dance Central is enough to keep the 360 around the house just like I gave my Mom a Wii with Wii Fit Plus and that's all she does. You just gotta hunt down the ones that might interest you.
I would recommend a Wii but with the new Nintendo piece coming out next year, it's gonna be backwards compatible to 2 gens back so I can't really say buy a Wii right now lol.....
