360, as you already know it has more better exclusive games than PS3. The only reason I'd want a PS3 is MGS4 & Little Big Planet (or whatever it's called) & it saddens me since the PS2 was so awesome.
Who cares if it has hard ware problems, if you actually have good games to play it's worth it. Plus most new 360 have probably fixed this.
Uh, 360 has in terms of outstanding games:
-Halo 3
-Gears of War
-Mass Effect
-Dead Rising
-Forza 2
-Project Gotham 3
PS3 has:
-Resistance: Fall of Man
-Unreal Tournament 3 (for now)
-Ratchet and Clank: Tools of Destruction
-Uncharted: Drake's Fortune
-Metal Gear Solid 4 (is currently rated higher than any 360 exclusive and it's less than 2 weeks away so I'll count it)
-Warhawk
Note: 360 has been out a year longer.
However, upcoming 360 exclusives that look impressive are:
-Gears of War 2 (looks great)
-Splinter Cell
-Banjo Kazooie (loved the first 2, if this can live up to it then great)
Upcoming PS3 exclusives that look impressive are:
-Little Big Planet
-Killzone 2
-Resistance 2
-SOCOM
-Final Fantasy 13 and Final Fantasy 13 Versus
-Gran Turismo 5
-God of War 3
The whole "PlayStation 3 needs good games" argument is long dead. It has been for a long time as well. PS3's launch titles were FAR superior to the 360s, and thus far, given the time the 360 has been out and the time the PS3 has been out, the PS3 actually has more great games than the 360 did at this time.
Now, the 360 is a great system, no doubt. I'm simply trying to refute the "PS3 has no games" argument.