I'm not sure if hacking is worse on the 360 than it is on the PS3 because I havent played on both console an equal amount of times. But there is definitely cheating on PS3, but its very rare.
I was on our 360 last night, played a few games and said screw this, I'm playing it on the ps3. I hate the xbox controllers (I'm pretty sure me left thumb isnt where my index finger is, so why is the joystick way up there? Plus it feels like i'm holding a dinner plate) and it was laggy and one of the rooms just closed down. Went on the ps3 and I was happy.