Inferior hardware really don't matter (Wii!), but the Ps3's only half a gaming system, the other half is a next-generation Blu-Ray player from the inventors of Blu-Ray themselves and then a linux box.
X360 misses out in linux and next-gen player (HD-DVD). X360 + HdDVD = 600$, and that too 20gb. 20gb Ps3 + Blu-Ray player = 500 - So Ps3 can actually turn out cheaper if you look it at a different angle.
Heck, I'm thinking of buying a 20gb Ps3 instead of 60GB one, the Hard drive can be upgraded to 720GB now, wireless controllers can be bought so the only think I'll be missing on is the MMC reader (Sony Duo only), but since it has a USB port, an MMC card reader will easily substitude that, so the only big loss is Wi-Fi which many people in India at least won't be needing.
So Indians should go for Ps3 20gb, costing 500, only a 100 bucks more than Xbox360 but then for those 100 you get a (1000$)Blu-Ray player + Linux.
Though I'm aware to some next-gen media don't matter now, but there will be a time when
it will.
And PS3's leading in the poll