If the Xbox could handle PC SM 3.0 native the answer from Paul Bleisch should be different. In this case he had written SM 2.0, SM 3.0 and a specific SM 3.0 variation.
Paul Bleisch said:On Windows, we expose support for all existing D3D9 shader models (SM1.1 through SM3.0). On Xbox you'll get SM2.0 and the Xbox 360-specific SM 3.0 variation ("XVS 3.0" and "XPS 3.0"). Neither Xbox 360 or Windows supports SM 4.0 which is D3D10.
Paul
From ATI and MS in the past we have heard a number of comments about "SM3.0 +". Now that very well may be PR, but if you refer to my post earlier in the thread, which links to the Xenos article, it actually goes to some length comparing PC SM3.0 requirements and what Xenos supports, and in almost every case Xenos supports more than SM3.0 requires. There are also a number of texture formats that may exceed D3D10 standards and of course with unified shaders Xenos and point sampling things like vertex texturing (not completely required if you can do R2VB) are natively supported.
So my question to you: How do you arrive at the following conclusion based on Paul's quote:
Locks like that Xenos is not able to process PC SM3 without problems.
Do you have another source or are you assuming "Xbox 360-specific SM 3.0 variation" means, "Cannot do what the PC can do"?
If it is the later, I would venture a guess that the fact Xenos can do hardware tesselation, memexport, and a number of things not in the SM3.0 featureset that the Xbox 360-specific variation is a version of the API / Shader Model that supports these features NOT found on the PC.