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I'm grateful for both platforms, but I prefer PSN. Mostly because of all the great, sometimes-hard-to-find PS1 games that are available for a cheap price. For example, I can buy Klonoa for $6 instead of $40 on eBay.

I much prefer perfect ports of old-school games, which you find in greater quantity on Virtual Console and PSN. Often times the game is an enhanced remake on XBLA. These can be fun, but I'd rather play the game the way the original designers intended. Of course there are examples where the enhanced remake is even better than the original -- Bionic Commando -- but I'd still like the option to download the originals.