I made the choice to pick up a PS3 in January. It is one great machine, but it does need more games. I am looking forward to MGS and DMC on the console.
The reason I picked it over the Xbox360 was because BluRay was built into the unit. I know you can pay an extra $199 or so for an add-on to get HD DVD on the Xbox360. However, including it in the PS3 almost guaranteed the BD some level of success.
The reason I picked it up over a stand alone HD DVD player is that it does so much more and was a small increase in price over the prices of stand-alones back in January. In fact, it was less expensive than the Bluray stand-alone players.
I also liked the idea that the PS3 would continue to get firmware updates. Most stand-alone players are forgotten about after one or two new models come out. This will not be an issue with the PS3.
I liked the idea of interacting with the PSP. With the ability to access movies, music, and photos stored on the PS3 or streamed to the PS3 from a computer, the PSP becomes that much better. Now you can sign into the PS3 with the PSP from any wireless connection.
This is just a small list of reasons. I am not a "gamer", but I will play the occasional game. However, if I was exclusively a gamer and needed a machine, I would get the 360 now and grab the PS3 in a year or so. Of course most console "gamers" already own a 360...
The CD sound quality is great and it gathers info on each CD so you can see song titles, album name, and artist.
The SACD is fine for two channel over the analog outputs, but you need a receiver with HDMI inputs to get surround sound. I hope they come out with some sort of a 5.1 analog output attachment, but I will probably upgrade to HDMI some time next year when HDMI1.3 is more common in receivers.