As for what the PS3 does other than that:
1) - DVD Upscaling to 1080p (IE Full HD)
2) - Blu-Ray player (currently one of the only few that can be updated to keep up-to-date with the latest BD profiles, allowing it to ensure it can use all BD features (picture in picture playing etc...)
3) - Use Blu-Ray for games - Just as Hideo Kojima who's currently finishing off Metal Gear Solid 4, and he's glad that the PS3 has this cos he can try to get close to what he wanted to achieve by utilising the 50GB of space on the game disk (although he did complain that even this wasn't big enough for his vision). Compare this to the XBox360 9GB per disk
4) - PlayTV - Soon the PS3 will become capable of being a HDD TV recorder. And it can do it in Full-HD should you wish
5) - Free online gaming for all (IE you don't have to pay a subscription)
6) - Full-HD gaming (IE - 1080p) - It's the only console out of the latest generation to offer this to all owners.
7) - Internet - Yes, you can browse the internet
8) - Voice Chat
9) - Reliability (OK, now I'm starting to have a pop at M$ - hehe)
The list of features goes on and on and on....
Basically, the talk within the gaming community (IE very vague rumours) is that M$ could release the XBox720 (or whatever they are going to call it) either late 2009 (Christmas) or early 2010, but that the PS3 should keep going until a replacement is announced around about 2014.
This is due to all the problems that M$ have encountered with the 360. Reliability. Functionality (no wireless internet connection etc). HD-DVD being stuffed. HDD capacity problems.
Obviously, the 360 Elite has gone some way to correcting some of the problems, but the talk is that M$ are currently working on either a much improved 360 that actually works reliably, and has all the funcionality that people need, or they are working on a successor to the 360.
This is partially based on the timeline for the expiry of warranties that M$ issued regarding the Red Ring of Death.
I'd suggest (as a fully confirmed PS3 fanboy) that you either get the PS3 now, or wait 1 month to see the outcome of what happens when GTA4 is released and MGS4 should be following shortly afterwards.