The lights are on
I currently have a 360 being repaired by Micro$oft. With that being said, I still think the 360 is the better system but the gap is not nearly as evident any longer. PS3 has pretty much caught up and is more reliable. I can't give up my progress and totally switch over to Sony because I just love my Xbox & Live. But for someone who hasn't owned either yet, I would actually suggest buying a PS3. (especially if you own a HDTV b/c it doubles as a Blu-ray player)
The problem will come in if you want some of the exclusive 360 titles.
In a perfect world, I would be able to have both. (that's the dream lol)