Hey come on now, keep it cheerful!
I remember when the PSX came out, I hated the joypad (after being a massive Sega fan). Now all these years later I find it to be the best joypad design, and after three iterations of the console, it has hardly changed a bit.
I am also unsure how to compare the online gameplay. XBox Live is a payed for service, so you would expect it to be a lot slicker than the PSN.
At the end of the day, MS did a great thing with XBLA - it really pushed forwards the concept of online console gaming. Granted, this already existed via Steam etc for the PC - but that was never mass market in the way XBLA is. But, I think MS has made a definite choice in targetting the casual gamer with its console and services. Its an ideal way to make lots of money while it can, and if some great games turn up for hardcore gamers then all the better.
When it comes to longevity, I think Sony has it tied up tight. When it comes to market penetration, MS has won. I wonder how likely it would be to see MS ditch the hardware to concetrate on the software? I mean, if you got XBLA on the PS3 for a monthly fee, everyone would be a winner there...