The PS3 is the most powerful 3rd Generation console. It is far more powerful than an XBOX360 or a Wii. However, power does not always mean excellence. But in the PS3's case, it does. The user interface (otherwise known as XMB) runs smoothly without any hitches. The PS3 is the cheapest blu-ray disc player on the market. It can play all forms of media: Video, Photo, Music and ofcourse games. It has built in WiFi technology to allow access to the internet so that you can surf the web and download basically anything to the (massive and upgradeable) 60GB hard drive. The online play with games is free, unlike the XBOX 360. The PS3 can handle full HD graphics and video of 1080p.
These are the features of the console. However most people use it mainly for gaming. As I said it is the most powerful console, but not all the power has been harnessed yet. Most games out at the moment for the PS3 can only be played 720p graphics. This is because these are in the first batch of games. As in all consoles, the game developers will soon come to grips with the PS3 and render what it is truly capable of. Hopefully games like GTA IV will show this. If you plan on buying a PS3 in the future you may want to wait for the price to drop, or for better games to come out (whichever comes first). If you do not not plan on buying a PS3, I recommend that you reconsider, and buy one in the not too distant future.
Whether you buy the PS3 now, or some other time, you will not regret it!