Its definitely improved. No one can dispute that. Quite frankly it couldnt get any worse than it was back in 2007.
However. The choice of architecture (Memory, CPU and GPU) still holds the PS3 back.
Mike Carmack once famously described the PS3 architecture as "curious". That is a very polite way for a respected game developer to say "not a very smart choice"
Games have improved although the occasional duff multiplat still rears its head even now.
Its the First party games where PS3 owners can at least puff their chests out. A good selection of highly playable titles.
Blu Ray has still not fulfilled its promise in the AV world as DVD still reigns almost unchallenged worldwide. It has nonetheless met the need for game developers to avoid multiple disks. This may have come a gen to early as even now only a handful of titles on Xbox require multiple disks.
The big problem for Sony is the bottom line. A reputed 6 billion to develop followed by 3 years of below cost sales at a probable average loss of 100 bucks per unit. This translates to a 9 billion dollar investment before any royalties from BR and DEVS are taken into account.
In Conclusion the PS3 may well be a lesson SONY had to learn. Ultimately even if BR takes off and dethrones DVD for the next 10 years the PS3 experiment will never return a black figure in the profit/loss column.