I have a ps3 and its been a great multi-media device for us. We watch a lot of streaming tv and movies and play a few games now and then. I think all major "gaming" devices are going more and more this way. That looks like what the xbox is doing. Problem is that they need to have great game content as well or they'll struggle, like the PS3 did for awhile after its launch.
Truthfully, this used game issue is a concern. I think Sony and Microsoft will mirror each other on the used game issue. I also expect both companies to have a much larger focus on trying to sell all of their games over their internet library stores... cheaper production cost and distribution cost while clearly stopping people from being able to play the game on a system at a different location.