Apple TV vs. PS3 for photos & home movies

I'm sure some of you have both of these units and have a comparison as to which unit displays photos & home movies better (sharpness, color, etc.) I recently bought the Apple TV and I'm not that impressed with the photo quality and 960x540 home movie recoding quality. The PS3 outputs at 1080p, and should be superior to the Apple TV in quality. I know you can use the Medialink software on the PS3 to interface with my Mac's iphoto & itunes.
Looking for some real world comparisons from owner's of both systems.
Thanks guys

I own both, use a Mac for my computer, and have owned my PS3 longer than the Apple TV.
Honestly, the PS3 sees more use than my ATV. However, for simple viewing of iTunes media on my HDTV, the ATV works well whereas I know I'd have issues with the PS3.
I use a transcoding media app on OSX that allows me to browse through my videos on my PS3 as if my iMac were a media server. The system works quite well, honestly. I'd say that it is EASIER in a way to view non-Apple-formated videos this way, but if it is a standard that iTunes or ATV can play in HD, then the ATV works better and outputs it at the HD res without transcoding loss like I'd see through the PS3-media server linkage.
For example: I have all of Farscape and Babylon 5 bought through the ITMS and thus watch it on my HDTV via the ATV. Also, my other videos that iTunes plays play though the ATV perfectly well without some of the network hitching I get when trying to view them transcoded via the PS3 media server (I'm convinced this is a case of my iMac needing more RAM to let my 2 cores do their work..... if only I had the new 27" iMac.... drool . . . . 4 cores available do to the encoding.....) for the HD versions (for example, the HD version of the popular "where the **** is matt" youtube video).
As an iTunes interface to an HDTV, the ATV does its job and does it well (with some caveats). Outside of that, the PS3 excels. Also, HD movies through the ITMS are nothing compared to their blueray counterparts. Then again, the PSN video store pales in comparison to the ITMS. Star Trek is available in HD through the PSN video store, but the audio is only in 2ch stereo. Sad. I have the movie on blu-ray (which has the audio in 5.1 Dolby TrueHD), so I'm not sure what the HD version is on the ITMS.
I see the 2 systems (ATV and PS3) as complementing each other. My PS3 is my blu-ray player, non-iTunes video player, and game system. My ATV is my iTunes interface for my Home Theater system. However, as I live in an apartment, I more generally just use my apple remote and control the audio on my iMac directly. Still, the ATV is quite useful for nights when I just want to rent a video (the PSN video store is lacking,and the new netflix service for the PS3 requires a Netflix authorization disc to use in the PS3.... most likely due to contractual agreement..... (thankyou M$ for binding Sony's hands like that, you know you're the ones who did that with your money paid to Netflix). The ITMS through the ATV is therefore easier for me to use and more expansive on video selection (though I still have yet to see Gods and Generals appear on the ITMS video store.... grrr), so for HD rental, the ATV is the choice I make.
As far as photos.... since my Photos are in the standard place on my mac, the ATV is more readily there to display them all than is my PS3, which would require me to have up and running the media server app on my Mac (which I don't always have running).
So, like I said, the 2 systems complement each other. Still, for the specific use you're talking about, I think the ATV does just fine. However, if you're looking for a comprehensive system, I might suggest the PS3 first, as you get the PSN, blu-ray player, and game system all in one. If you can, though, BOTH is even better (and affordable since the PS3 Slim now came out.... though I have been hearing gripes about some problems with people's PS3 Slims.... but that's in Sony's Disc. forums, and it is like the ones here: kind of an emergency room).

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