Some interesting points for both preferences I think.
Overall it seems people agree that having some head room for developers to improve there games both visually and technically (i.e physics, A.I) throughout the lifetime of the console is both welcome and expected.
I guess in a black and white scenario I do personally prefer the greater room to grow over quicker initial results.
It's not as if the PS3 is performing poorly on the graphics front either. Most will agree titles for both consoles are roughly even with the first party offerings neck and neck with each other.
Considering I have been quite impressed up until this point with games from both companies, graphically at least, the thought that the visuals will continue to improve over the next 4-5 leaves me with a warm fuzzy feeling inside
.
Having owned a PS2 (still own) and watched the games on that system progress over the years has given me a great appreciation of leaving developers that extra headroom. And I half expect (maybe not reasonably) the PS3 to follow a similar cycle. Both have difficult architectures to program for initially, with the PS2 having a more exotic graphics card perhaps, but developers who did put in those initial efforts to get to grips with the hardware (especially when comparing the 3rd party offerings to those of the 1st party) saw large dividends and I hope the same will hold true with the PS3.
On some side notes I also think it's quite possible that the PS3 may last 10 years despite arguments to the contrary. Lasting 10 years dosn't mean the console won't be supesceded before this time. The PS2 continues to sell (at a decreasing rate admitidley) some 8 years after it's launch and thats with the unusually early arrival of the 360 into (4 or so years after it's launch).
The PS3 may not duplicate it's predecessors success but should still have healthy consumer base by the end of it's life cycle. I also feel Microsoft will not be in as big a rush to get their next console of store shelves considering how much profitable their position is now compared to last generation.
I also disagree with the view that people are in some way getting cheated for the fact that the console is not performing at it's peak shortly after purchased. I think in general people buy products these days with an expectation of improving them at some point in the future (especially in the consumer electronics and the PC space).
Some examples include things like amplifiers for the home theater. Full 7.1 surround sound was rare not that long ago and now there is talk of games including this feature so buying an amp a couple of years ago that supported the widley spread 5.1 format and also supported 7.1 doesn't seem that silly even though the functionality wasn't used right away.
How many people have High def T.V's but no HD-DVD or Blu Ray player? That could be seen as not getting everything out of the product initially as you are only viewing half the content in near it full resolution but I don't think people feel cheated by that.
The same is true for those PC user who have SLI mother boards with the latest graphics chips. There are no games currently (that I know of at least) that require a twin 8800 setup or even nearly utilise it fully.
I think this kind of "future proofing" is common and an intelligent design or purchase choice (at least in the long run finacially).
Anyway thats my two cents worth. Sorry if I started to wander off topic but I'm new and doing my best