Sigh... people, you're missing the point. In this particular case, the OP is better off with the trade, because he didn't have a big investment in the Xbox 360.
As to pros and cons of the Xbox and PS3, we can debate them forever... Well, until the thread is closed. Everybody has different needs and tastes, so it doesn't really matter.
I, for one, always agree with hardware reliability as #1. Regardless how big your game library is, w/o the console, you just can play them, can you? I know the Xbox got replacement programs, free and free. But so? The term is, INCONVENIENCE.
For #2, best value for your bucks. I hate to say this, but the Xbox failed again in this category. No WiFi is pissy enough and there's a MS adaptor for $60-$100? Crazy! Upgrading HDD, damn... 120gb for how much? You're

ing nuts! Don't tell me the crap about managing the HDD wisely and you should never have to worry about space.
Game library is not relevant for me... Put it this way, at a buffet table, how much can you muster a time w/o missing the enjoyments? The only thing one should look is what the other buffet table is offering (not how much food, but what interests really you)...
Lastly, the whole debate over BD is pointless and PSN sucks need to stop. It's so yesterday... One can reasonbly argue PSN vs XBL, since those two are separate entities and vital for the on-line gaming communities. It's really your call, free vs. $30-$60 a year. Personally, i take Free anyday... with $30, i can buy some PSN games (more with game sharing). Like i said, if i want to play on-line on XBL, i use the 48 hours cards (why pay the times you're not using).