Right now it's kind of a weird time for studios because it's hard to get funding for a project. The first 6 months will be limited to a select few games like always. Xbox and PS2 are thought to be on the way out so you can't really get funding for either of those.
So you have a ton of games like this one:
http://www.youhavebeenpossessed.com/
Which may or may not find a publisher for the first year of the console's life (this one in particular probably will, but recall games like Dronez...)
So most studios are saying "we are making Xenon SKU NOW and yes, we have Xenon dev kits and this nicely working Xenon game, so be nice and give us $$$ to release it...and we'll also do a PS3 port in 2006 when that is ready to go"
The head start is not for gamers, it's for developers...the momentum of superior Xbox development is carried over into next gen, and it will mean a significant difference in quality of game experiences.
Unfortunately you will also see a lot of floundering studios clamoring for next gen funding and trying to get their upcoming projects noticed. A lot of consolidation and renderware. That will suck, but hopefully the most talented medium sized studios will continue to survive.
Seeing some interesting happenings in terms of studios being bought out and forced to do PS3 SKUs even though it's not coming for 2 years...We'll see, but I think MS has a great strategy for next gen and nice hardware, MGS recently did that internal consolidation and are probably aiming for about 4 or 5 series to be Halo-level next gen so they are going for the jugular.