Xenon vs Cell Which one really is better ??

[Kyros]

Before the PS3 came out Intel had CPUS with better performance.

Depending on what you mean with better performance you are either wrong or correct. If you take raw floating point crunching power the CELL is better than anything Intel had to offer. For example if you want to encode/decode a video the CELL is still faster than the intel lineup.
If you mean faster in terms of general purpose applications then you are correct.

OT: It actually doesnt matter how fast the cell is, It still has to take it's data from the Memory.

Depends again from the usecase. The CELL SPUs have their own memory section to work on and are customized for stream processing of huge data sets. You can be sure that IBM knows what it is doing. A different question is if the CELL is the best fit for a gaming console.

One nice example for the power of the CELL is that Toshiba demonstrated the display of 48 simultaneous MPEG2 streams on a single display. That's something no INTEL processor could do.