Yup. Removing PS1 and 2 playback was something to be happy about, keeping the price high but only having the 40gig model was something to be happy about, and now doing nothing more than adding watered down features to their system that the 360 has had since day 1 is something to be happy about.
I'm not quite sure where you get your information from, but PS1 compatibility was never removed from the PS3, it's still there, even on the 20 gig models. They only remove the ps2 emulation hardware when they did their budget cuts, though that's neither here nor there, as the topic is about their networks.
As for the networks, 360 definitely has an advantage when it comes to online play and community, though a good 50% of said community, for either service, are nothing but jack asses who seem to be out strictly to ruin the game for other people. . They also have an advantage when it comes to non game content in their online stores. With PSNs last major update, i think they surpassed Marketplace as far as ease of use for finding things goes, but considering how much less there is to find, thats not really a factor. PS3 is relying on the hope that Home delivers on what its promising, which could easily push it over the edge, but seeing how many technical flaws came up, and are still appearing in the beta thats a lot to hope for. If they can deliver on their promise, and keep it a free service, I think it could be great. Though even if it doesn't completely deliver, Home should still be an interesting way to display the trophies, even if you're the only one who's going in there to look at them.
Game quality is an entirely different issue thats not really the point behind this thread so i won't go into it. DLC however does tie into it. from what i've noticed, 360 tends to get their DLC a little faster. But for the most part, PS3 will get a similar or alternate exclusive DLC later (particularly the case with Rockband and Guitar Hero, which in all honestly are the biggest DLC games ever made, I mean my Rockband DLC folder is just shot of 2.5 gigs)
To break it down, when I'm looking to get a game and deciding what console i want to get it for,if i play to do a lot of online gaming, I'll pick it up for the 360, if i just want to play it alone, and do an occasional multiplayer, I'll get it for PS3, it simply comes down to the fact that the DS3 feels a lot more natural in my hand than the 360 controller does, and when you're setting down to play a 5 hour session, its all about comfort.
