If memory servers correctly, PSN is having some serious technical difficulties lately, with hackers rendering the service for some games unusable. As far as I'm concerned, XBL is, by a long shot, the single best online gaming experience I've ever had. I have not, however, used PSN, but I have friends that have both XBL and PSN and tell me PSN isn't even on the same playing field. Sony's supposedly working on that lately, though.
In terms of what should have been the better and more successful console, I don't think a lot of people would argue that the PS3 should have held those titles. The PS3's hardware, though, is a little too powerful, too much "ahead of the times" for the majority of developers to dedicate the resources to using the hardware to its fullest. Again if memory serves correctly, Sony has and is still losing money on every PS3 sold because it simply costs too much to produce - consumers will not pay the premium to even cover cost let alone profit. It's a shame, because I'd been a PS2 fanboy and had every confidence in Sony for its successor, but it simply did not work out that way.
For me, obviously cost was a huge factor, but it also came down to the online experience and, admittedly, Microsoft ran away with that one. Microsoft definitely scored with XBL. It's not just a "network" to get in touch with other players or play with other people, it's definitely its own little realm. XBL has, with the 360's incarnation, taken online gaming networks to another level and set a (much) higher standard for future consoles and networks.