The HD-DVD attachment for the 360 is great, it looks every bit as good as Blu-ray on the PS3...as long as your 360 doesn't DIE ON YOU. After 2 years on the market, the quality of the 360 has not improved one bit and that is really the main reason why I never bought one.
My 2 PS2s were quite problem free and my PS3 seems to be doing fine so far and I use it a lot. It is true there aren't a lot of games, but there certainly aren't too few either; there are more than enough to choose from right now, though specific series may not yet be available. If you have a PS2 catalog, 72% of all PS2 games (which means thousands) are compatible with the 80G PS3.
Let's see, music server, wireless networking and streaming, Blu-ray, high quality DVD upscaling, FREE online service, HDMI 1.3, SACD, built in card reader, user replaceable HDD...to name a few features. I'd say you are getting more for your money with the PS3 even though it costs more.