I don't what the hell game you folks have been playing but Forza3 has sick physics. Turn off all the hand-holders and turn on the telemetry.
The 360 has had some fucked up reliability issues, but you know what ? They stepped up and offered a 3 year warranty on every effected 360. I've had 2 RROD's and it sucked ass, but at least I wasn't just fucked out of my cash cause the initial year had passed.
I can't tell you how many ps1, ps2 failures I had that were out of warranty (particularly drive failures) and I didn't get shit from Sony. Glad I had a extended retail warranty or I would have been left out in the cold. Regardless my point is that all manufacturers will have hardware bugs, what counts is if they take responsibility for them. (yes I am aware that they were, to a degree, forced to take action as the result of a class-action would have been far more ugly)
The PS3 is an awesome piece of hardware but I tend to pick the 360 for the multi-platform titles cause the network is better, and by far more robust, and I much prefer the 360 controller for its stick placement and triggers (x1000 for shooters). The PS3 plays more Blu-ray movies in my house than games, but IMHO the exclusives more than make up for the cost of the hardware. Uncharted 2, Killzone2, LittleBig, Infamous, and soon God of War are fucking FTMFW. If GT5 ever comes out that would likely be another sick title. GT5 prologue doesn't even count, fucking paid demo bullshit.