The 360 and PS3 kinda defy standard console logic.

What i mean by that is this. The console that had the better tech almost always got the better looking game for Exclusives and Multiplatform. Many will argue (including some devs) that 360 has better game tech, but that claim dosent seem to be backed up by Graphics in games for 360, cause PS3 Exclusives seem to be of higher visual quality than 360. If 360 really did have a better GPU (shich it technically does). wouldnt we see that reflected in 360 Exclusives compared to PS3 Exclusives? Weve seen with Recent PS3 Exclusives that PS3 can get higher Visual quality out of its Exclusives right now than 360 can, but for some reason 360 still gets the better Multiplatform version most of the time. the two consoles kinda defy console logic in that way. XBOX had undisputable better tech than PS2, and so did SNES compared to Genesis, and thus XBOX Exclusives and Multiplaform games on it looked better than they were on PS2, and SNES 9 times out of ten got the better version. It just boggles my mind that, if 360 did have a better GPU, you know the thing that creates the graphics, wouldnt that be reflected by 360 having better looking Exclusives than PS3?    

I always thought the PS3 was the more powerful machine.

it's always this way 
the xbox and even the gamecube have FAR better hardware than the PS2, but shadow of the colossus was a PS2 exclusive

I think it's pretty much common knowledge that the PS3 is much more powerful, if you're willing to spend the time and money to dedicate getting everything you can out of the architecture. Few independent studios have the inclination do so. That should change as the PS3 userbase grows.

1 possible thing is just the storage of the Blu-ray.  I think I remember the developers for God of War saying just the character Kratos from the third one wouldn't fit on a standard DVD disc.

The Playstation 3 is more powerful, but harder to program for. The 360 is less powerful, but easier to program for. 
 
So to get truly great results on the PS3, developers have to devote themselves completely to development on that platform; this is why Playstation 3 exclusives look so good.  Also, porting down from the PS3 is relatively easy, while porting up from the 360 is pretty hard. Since the 360 is easier to program for, many multiplatform developers choose it as lead platform, forcing them to port up to the PS3, leading to games that look superior on the 360. 
 
At least that's how I've understood it.

well xbox might have a better gpu but i believe ps3 has a far better processor which can be used for graphics. The reason xbox 360  versions usually look better is because its much harder to code for the ps3 and the xbox is very similar to the pc so those versions are likely to be higher refined.  We'll that's what developers say anyway.

 
 im just going to get my Multiplatform games on 360 unless told otherwise, and use my PS3 for Exclusives and gmaes that look better on it.

I thought the PS3 had better tech. 
  
 I'm a simple man, so i don't know about all these CPU's and GPU's you be talk'n bout. However, i do know that both Uncharted 2 and Mass Effect 2 are both perdy and i wouldn't mind spending an even'n with either one of those gals.

Its not so clear that one console is better than the other, the 360 has a better GPU and more RAM but the CPU (and SPU combination) is more powerful than the 360 (though a lot more complicated). One of the things I remember reading about Shadow of the Colossus was that to get extra power they  process some of the graphics on the sound chip. Again I sadly cant remember where I read this but I heard they do a similer thing on PS3 because they its harder to do Anti-Aliasing the normal way (they would have to lower the resolution to get the extra AA) which has something to do with a smaller framebuffer than the 360 so they do have to do anti-aliasing on the CPU or SPU in order to keep the resolution high which is apparently extremely complicated and hard to code succesfuly.

So its a lot harder to point at one system and say its the best this generation since they both have high and low points.

The idea that GPU power = better graphics is not entirely true. The 360 and PS3 can not really be compared like this as the architecture (how the processors handle data and code) is so different. A 360 has a CPU and  a GPU. the CPU executes the code handling the game logic while the GPU handles rendering. A PS3 has a GPU and the Cell SPU. The GPU handles rendering however, some of the rendering tasks can be processed by the SPU. In effect using the Cell as a second graphics card. This requires that the rendering code be written specifically to take advantage of this feature. That takes too much development time and money on a multiplatform release as you already have rendering algorithms that will work on 360 and ps3 using only the GPU for rendering. This is all much more complicated than that but I am still learning the intricacies of 360 development, when I read papers on PS3 stuff it hurts my head. 
 
Edit: It is not the size, it is how you use it.