Out-dated Blu-ray technology? What are you talking about? Blu-ray is the best looking format out there and it has the most features than HD-DVD... A Blu-Ray DVD player by itself is $1,000 at bestbuy so getting the PS3 just to play blu-ray disks saves you $400 right there. And yes there aren't that many games for the PS3 but it was the same way for the XBOX360 when it came out...
Why do u think blu-ray is "outdated" technology? Thats kind of a funny thing to say...
Blu-ray certainly is not dated, but you are clueless if you think a PS3 has better graphics than the 360. There isn't a game out for it yet that looks better than Gears of War. On top of that, the PS3 online network sucks ass, and many game developers have openly said the PS3 is a POS to program for and that the 360 is a much better platform.
Oh finally, yes the PS3 does have blu-ray, but if it loses the format war, you have a worthless player.
I went and got the HD-DVD for the 360 and it looks pretty damn good, but its not night and day like normal TV and HD.