Here is a 60 fps Xbox 360 game:

http://xbox360media.ign.com/xbox360/image/article/843/843290/ninja-gaiden-2-20080102000128225.jpg

Show me a PS3 game running at 60 fps with better graphics and as many simultaneous on-screen models as this game often has.

Uncharted drakes fortune(30fps)

Metal gear solid 4(60fps at times)

GT5 (60fps)

There is no XBOX 360 game that tops any of those visually.

Not to mention killzone 2 blows those 3 games away.

First off, the Geforce 7800GTX has demonstrated performance that is higher than the RSX and was released in late 2005/early 2006 ... Beyond that the Cell is a gimmicky processor which has yet to demonstrate performance above what was available from Athlon X2 in the 4000+ range were able to do; please do not make the (moronic) assumption that it is similar in performance to a Core 2 Duo (Core 2 Quad) or any of the Power6 processors. 

 Its called

NINJA GAIDEN SIGMA

Which runs at 60fps(AND) 1080p, same visuals as well.

360: Yes.
PS3: Not by a long shot.

Where should I start?

1- It doesn't run at 1080p, check beyond3d's pixel-counting thread.

2- That game has like 3 or 4 enemies on the screen at a time, while Ninja Gaiden 2 usually has at least double.

3- Ninja Gaiden 2 has better AI which consumes additional CPU power, especially with more simultaneous enemies.

4- Ninja Gaiden Sigma doesn't have blood, and if I recall correctly the enemies disappear from the screen after dying, unlike Ninja Gaiden 2.

Oh god not this again, I cant even argue anymore, with wii/pc fanboys on the attack I cant even say a thing, you won the 360 is so much more powerful than the PS3.

Because of your superior PC intelect.

I think the next generation of consoles will have better graphics, but I doubt that'd be the focus of them. Since further graphical improvements would be subtler than what has happened in the past,  I think everyone would try to one up the Wii.  My guesses on features we might see (or at least I would like to see):

-  Stereoscopic 3D display glasses that are controlled by the console.

-  Dynamic head tracking capabilities.

-  A lot more accurate tracking of gestures and position than the Wiimote

-  Speech command recognition

nope I don't think so, usually consoles graphically peak near the end of their life. It's at that stage developers know exactly what the hardware can do, and they know how to push the hardware hard so they can get the full graphics potential out of the hardware.

The Xbox 360 released a year earlier, and to my knowledge has a more powerful graphic processor or is at least comparable to the PS3's graphic processor. I think if Sony would have used the best processor available @ the time, the cost of the PS3 would have been even higher.