I have both systems and both have failed on me. The PS3s blue ray ate it and it does not get much play because the xbox by far and wide has better games. $160 or something like that to get it fixed by Sony.
My 360 has also bit the dust once and it was free to get fixed and they sent me a free 3 months of internet. The guy who posted the failure rate at 30% ya maybe like 2 years ago. All the new systems don't have any problems with the ring of death.
On the graphics tip...you need to take a visit to gamespot.com because they have done 4-5 comparisons over the past few years of games on both systems with photos you can scroll over and see what they are talking about. PS3 has not won one yet but it has gotten better. To tell you the honest truth if you are using the best tv with HD and all the good stuff you won't be able to tell the difference in graphics.
Both systems are great.
Sorry... I am a nerd, been playing video games for many many years. It is my other addiction when I am not surfing or banging out the gf .