@ the OP:
Graphics don't make the game. Gameplay makes the game. Take a look at the catalogs of both systems and really think about what you want out of your gaming experience. Personally, I chose Xbox360 over PS3 because of three reasons:
1) Has a great number of exclusive games that appeal to me.
2) Higher install base, and better online support (yes, I am WILLING to pay for the best)
3) I was never impressed with the PSO or PS2 or their exclusives (Excluding MGS and Shadow of the Collossus) and I admittedly carried that prejudice over from the previous generation.
I also believe that the 360 will be supported more by third-party developers for a few years to come because of the ease-of-use aspect of development. Even staunch Sony supporters bemoan the difficulties of programming for PS3. I think this is something that Sony will address at some point, probably by updating their development kit and streamlining some of the coding processes to make it more appealing to developers.
If you're willing to throw 500+ on a gaming device, you might want to consider buying a PC. Most current-gen games will run on a 500 dollar budget pc, and if you take into consideration that you would easily pay 1,000 for a new pc just to do office work and check your myspace, you may as well put an extra 500 into it and get a hell of a computer (especially if you build it yourself).