Yeh the Wii's graphics aren't even in the same league, I didn't buy any of the new consoles b/c I don't play much anymore (not time). My PS2 etc just kinda sit there. But I played some PS3 and Wii at a friends house, current PS3 games are awsome and will only get better considering these are launch titles where developers haven't used it to it's full potential. Wii on the other hand was just a "fun" system, not hardcore like PS3 or Xbox 360, but it was just fun. Really cool playing golf, bowing etc with the control, feels like your right there.
As killer said as well, PS3 has blue ray, regular Blue Ray players go for around 900-1000 alone. Though their dvds are quite a bit more, run about 25-30 a piece.