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Blu-ray gives the PS3 an edge in a lot of areas. Game devs are actually able to cache data straight from the disc. Games like Uncharted show of the potential of Blu-ray. There are no load times what so ever. Furthermore games no longer have to be split up or downgraded in quality. Project Gotham Racing 4 did not have night & day tracks because of a space limit. The developers have the room (50gigs) to put in what they want. And it’s cheaper as well; you can fit all of the languages on one disc. And since the PS3 hardware is region-less a company can literally just press a single copy a million times over for all regions. And finally no disc swapping required. On the 360 Blue Dragon is 3 duel layer DVDs while Lost Odyssey is 4 duel layer DVDs.
The "system seller" PS3 games, MGS 4 and Final Fantasy XIII, will start showing up in 2008. It's just a shame the system didn't have much to show for it in 2006/2007.