OK, just watched it, and I agree Sony beat the competition. Helps that they didn't (couldn't, really) do a sales report at the start, and the games they showed sure looked pretty. Even a game or two I'm interested in.
As for criticism- too long. Too many shooters (my RPG lovin' wife watched with me and, despite being the PS1 and PS2 player in the family, was seriously disappointed that everything PS3 was an action/shooter). Chewbacca's costume needs some maintenance. I found Home creepy. Felt to me like it was aimed at sucking in the MMORPG/Second Life crowd, and those people can make me... uncomfortable.
The only complaint that I have that really matters though, is that I'm not sure they showed the PS3 as the console to get this holiday, especially at the low low price of.... what they had last year (yeah, I know - the models are better, cheaper, but the price tags in the Sunday ads are still gonna be the same). Most of the big titles are 2008. If they can muster through 2007 decently, I have confidence that they will pull out of their funk. But if they don't, I can see a lot more 3rd party support going to the competition. But at least the ball's back in the court now.
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