That gen was weird. The consoles were unreliable as fuck during its first 2 or so years. Games often ran like shit too. But compared to now, there were a lot of great games actually. Like, complete trilogies of Gears of War, Mass Effect, Uncharted, Dead Space etc. Such trilogies of blockbuster releases you won't find within 1 generation of consoles anymore. Bethesda released 2 mainline TES games, and also Fallout as well as expansions and handouts (NV). Rockstar did 2 GTA games, Red Dead, Max Payne 3, several expansions, Table Tennis. Performance and hardware quirks aside you can't say it was really worse than now. Bungie had Halo 3, ODST, Reach. All great games. Naughty Dog UC1, 2 ,3, TLOU and Left Behind.
They also tried different things, like MS pushing DoA, Ninja Gaiden, 2 PGR games and Sony having Motorstorm (also a trilogy, btw). Not the biggest money makers, but great games.
The PS3 was very backwards in a lot of things. Downloads, updates.. sometimes I just shut it off because I wanted to play or show a quick round of insert game and was greeted by this shit. 360 was a bit more user friendly.
But anyway, 360 was absolutely the better system between 2006 and 2009. They had the benefit of being early, thus having a library and usually multiplatform games ran better on it such as those from Ubisoft. I jumped ship late 2007, from 360 to PS3 and during this period I often regret this choice. But during the back half of this gen the PS3 was in a much better place.