I thought that on the PS3, system ram can be accessed for video but video ram can not be accessed for system
Correct.
But of course it is more complicated than just having one unified memory pool. But so far I've consistently read from multi-platform developers that they need that system half for non-video stuff anyway on both systems, so that's rarely the real issue these days. Just being able to save up to 30-40 MB of memory in the memory that's still available for graphics memory thanks to the use of EDRAM and having slightly more memory available 'after tax' for video is the main difference that counts. As we were also talking about Mass Effect 2 though, I expect that type of renderer (UE3) does not benefit as much from EDRAM as some others would.
Obviously, things start to look different when you build a system that streams textures from BD to HDD cache to RAM like ND do with Uncharted, but that kind of implementation remains rare in multi-platform titles because on the 360 developers cannot count on having an HDD present.