Totally confused: Should I get PS3 or Xbox 360?

Looks like you have done a lot of research. Honestly it looks that you will make more use with a PS3 than you would with a Xbox 360. PS3's Playstation Network is improving rapidly as time goes on matching Xbox LIVE in many ways and is continuing to get new players (about 14 million LIVE subscribers and about 12 million Playstation Network players). Also it looks like you want games that are only on the Playstation 3, this will benefit you since most multiplatform games also released for the PS3. The Playstation 3 is a good multimedia system that allows for you to watch videos (DivX files and Blu-ray movies), listen to music, and view photos much easier than the Xbox 360. If more of your friends play the PS3 than its a more better reason to get it; if they have a Xbox 360 and you don't want to feel left out, then you should get the Xbox 360 (at the cost of $50 a year for LIVE subscription). If your used to the PS2's Dualshock 2 controller, then there's no difference between the PS3's Sixaxis (discontinued) and Dualshock 3 controllers to the Dualshock 2 (besides the R2 and L2 ons, they are also better to play a wide variety of games with). The Xbox 360 is cheaper because it wasn't made with real quality parts and was designed with a fatal flaw (noticed by RROD, which will never be completely corrected) which lead to high failure rates (also why I don't have a Xbox 360 even now). It's worth the extra fun and features for a PS3 and for console that will be reliable. In the end its your money and the decision is ultimately down to you.