That last part Dom is so full of crap I don't know where to begin.
The controller thing is a preference, the PS3 doesn't even come close on media features (the Xbox is in the works as a digital cable box replacement, so all of your TV can come in through the Xbox and you don't pay a cable company like Sky or NTL).
The PS3 isn't more reliable. The first run Xboxes had reliability issues, but those are a thing of the past.
They make you pay for Live! because it is so effing brilliant. Sony offer a token free online service. You know that if Sony had something that rivalled Live , then they would be charging you out of the ying-yang for it.