Same answer I always give when people ask this question: Look at the games. Which system has more games that you want to play? Whichever that is, that's your answer.
This is also why I tell people not to use their PS3 as a movie player, unless they use it as ONLY a movie player. The drive in the PS3 is unique, in that it's the ONLY one that can play PS3 games. Now that stand alone players are less than the PS3, if you want a movie player you should get a stand alone player, keep your PS3 for games.
On the Xbox side, the RRoD issue isn't completely eliminated, but it is significantly lessened by the Falcon and Jasper chipsets. But there are plenty of other issues with the 360 which don't get as much attention. Drives have been known to put deep gouges into game discs. Microsoft claims it's only if you shift orientation of the console when it's turned on, but plenty of people would disagree with that. There's the E74 error which Microsoft still has really refused to elaborate on. There's the issue I had, where the optical drive would just start dying. In my case, my first 360 lasted close to a year, then it might take me a half hour of trying before I could get it to read a game disc. Replacement 360 suffered the same fate within about 72 hours, but the third is still going strong for the little I've used it lately. There have also been reports of issues with the GPU on the 360 causing various artifacts on the screen.
If you play games online, Xbox Live is not free, PlayStation Network is (currently). The 360 allows you to install all games to the hard drive, the PS3 is a game by game system where some may have a "data install" option to improve loading times. Though the PS3 uses bluray discs for games, with vastly greater storage capacity, so fewer games are multi-disc. And PS3 game discs have a special coating on the data side that helps reduce scratches.
One of the things I like about the PS3 is that it uses fairly common components. You can easily swap out the hard drive for a larger one. The controllers use a standard Mini-USB cable to charge, it comes with 11g wireless, and you can connect external hard drives via USB to get additional storage for video and photos. The 360 requires you buy a special hard drive module from Microsoft, in sizes and prices they dictate. The cordless controllers use a proprietary connector for charging. Wireless costs extra, and is ridiculously expensive.
Of course all of this is really pretty irrelevant when it comes to THE GAMES. In your case, you probably have a bit of a library for the PS3 that you'd lose access to if you bought a 360. Most of the interesting games are out for both consoles. The 360 of course has Halo and Gears of War, but the PS3 has God of War, and a growing collection of PSX ports.
So, I'd say hit some game review sites, look at what games are exclusive to each platform, make a decision based on which has more you are interested in playing.
My PS3 died after only 1.5 years. BS.
Background: I'm 62, a casual gamer that plays no more than a couple of hours a day. I don't abuse the consoles.
Choices: I bought a Panasonic BluRay player so I could at least watch BD movies now that the damn PS3 died. No one in my rural area wants to touch it, with the usual comment that "their not worth fixing" or they can't fix them. I don't want to give Sony another $149 for a repair fee because of their inferior product.
I'm looking at the XBox Elite, but wonder what the failure rate with the RROD is? Some posters on another board said that it's unlikely due to the new Jasper chip. Is that true?
Or, do I buy another PS3? I originally bought it due to the BluRay capability for BD movies, but don't need that feature now.
I'd like some opinions/suggestions on this, but not from cheerleaders from either camp.
Thanks for your unbiased opinions!
Chowhound
Comic Vine
GameFAQs
GameSpot
Giant Bomb
TechRepublic