In the latest EGM issue there's an article on Xbox 360 HD-DVD playback Vs PS3 Blu-ray playback. They stated the Xbox 360 HD-DVD add-on had the worst HD-playback of any HD-DVD player on the market. And that PS3 had the best playback of any Blu-ray player on the market.
The problem with that logic is the fact all of the standalone HD DVD players are made by Toshiba and they're all based on a single design and they all output a VERY good image. So even if the 360 addon is the worst it doesn't say much. If the Toshiba gets an A and the X360 gets a B that still puts the 360 as worse HD DVD player but in reality it isn't really all that bad.
On the Bluray side I think the PS3 has the advantage of HDMI 1.3 over the other BD players so technically it would make it the best BR player, however, I haven't read of any actual tests that state the video quality is the best of all the BR players.