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GT5 will be better IMO

Here's the list of rumored features of each:

Forza 3 = 400+ cars, 100+ tracks, 2 discs, damage, highly customizable, 2 discs, robust online, you'll get a "base version" and then be able to download something like 30 cars and 5 tracks for like 30 bucks until you get the final Forza 3 version sometime in 2010. It's not clear if it'll be cars on top of the 400+ and 100+ tracks or if the final 2010 version will have 400+ cars and 100+ tracks.

GT5 = 900+ cars, all manufacturers, unknown number of tracks, at least 50+ based on GT4, at least pseudo 1080p based off GT5P, robust online, some customization, damage