Seems pretty clear that Microsoft is less of an innovator than Sony (not to mention the big N), but I think you're being a bit harsh. If Lips really does work as advertised, then being able to use your own ripped music is a huge advantage over other music games IMO. And I'd be really surprised if they paid anything for Final Fantasy XIII. I rather think FFXIII was causing Square Enix to bleed money like crazy, and they looked at Sony's numbers and decided to go multiplat.
I'm thinking that the 360 doesn't have as great a future as the PS3 might. The PS3 is off to a rough start, sure, but it does have a lot going for it- BluRay, more powerful hardware (I guess just how much more is debatable), definitely more reliable hardware, free online, it's region free, etc. etc. Perhaps most importantly, it's got huge brand name and a lot of PS2 owners who just haven't jumped in on this generation yet. Once the prince point gets down, I have to think most of these people are sticking with Sony.
But as a gamer, and especially as a JRPG gamer, I also think 360 is the place to be right now. At least until Mistwalker starts developing for the PS3! And there's the rub for Sony - they always seems to have a lot of great stuff lined up for the future, but Microsoft has a great NOW.
Er... but then, I have Sea Life Safari showing on my Gamercard, so what the hell do I know? 
