I don't know about the console industry or media or whatever but anyone with basic knowledge on the consoles knows their advantages and disadvantages.
The 360 has a slight edge on the graphics card. In the rest, the PS3 has the edge and a quite significant edge with the CPU.
From what I have read, the 360 has a better than slight edge with the graphics card. The CPU in the PS3 has a large edge in regards to the processing. However, the 360 has another edge with the unified RAM, as noted by many companies that are struggling to get all the textures into a single 256 ram slot on the PS3. It has represented a big bottleneck. If you noticed, the PS3's biggest games are not offering splitscreen/co-op online or off (Killzone 2 for example). In the case of KZ2, the devs even stated that they couldn't push KZ2 split screen without sacrifcing quality. Where as you have a title like GOW2, which doesn't match KZ2's graphic fidelity and physics (but still look hawt), but offers co-op with splitscreen. They sacrificed some appearance for offering the co-op/splitscreen experience, and Epic was able to dump the huge textures of GOW2 into the single 512mb pool.
Both consoles are pretty much spot on for performance in the end.
For example, the 360 has a huge bottle neck to minimize production costs. It has a single memory chip that the CPU and the GPU have to share. If the GPU is using the memory the CPU has to wait and vice versa. It has some advantages, like not being limited to 256mb memory dedicated to graphics like the PS3 is, but the main problem is, it's slower. Also, the graphics card is directly dependent on the CPU since it's the CPU that tells the GPU what to render. If it's slower your GPU will have some limitations. Another thing is that the 256mb of memory dedicated to the Cell is a lot faster (more than twice as fast) than the GDDR3 memory used by the Xenon that it also has to share with the GPU.
Well, 512 is a bottleneck in general, especially compared to 1gb. However, the unified 512 has been seen as an advantage over the split option, which is actually a big bottleneck. Had the PS3 shipped with 1gb of RAM, it would leave the 360 in the dust. With that much RAM and it's processor, it would have opened up the bottleneck, and pretty much eliminated the 360 as a graphical competitor.
But in the end, we still haven't found the answer, since the Xbox 360 is capable of more (16) cars on the screen, and realistic physics from Shift.
Also, serversurfer is right about not merging the layers into a single one being stupid. That can't be a reason why Forza have less cars at all since it's just not what Turn 10 did. They must be merging the layers into one texture. If not, they would be too stupid to be able to make the game in the first place.
He is right as in, it would be stupid. However, nobody knows what they are doing with the liveries. It's just speculation. Merging into one is an optimal idea, but those layers can be edited by all users, so they are either NEVER merged, or they found a way to unmerge them when you put those cars into the hands of other players.
It's a combination of a lot of things
So you don't know why. You are just speculating like the rest of us.
Typical Bogie response.
And what game is that, seeing as you have no idea what the damage is going to be like? When I saw the bumper hanging from the nose of the Subaru, I was thinking Ferrari Challenge. Then when I saw a door get stripped off by a passing car, I didn't know what to think. If they use Digital Molecular Matter code, where everything is damaged on the fly, what game will that be like?
That is damage, right? FM1, FM2, FM3 all have damage. GT1, GT2, GT3, GT4 don't have damage, and now PD is adding damage. Nope, they didn't copy them

. But if Turn 10 changed their UI to show the cars similar to PD, then it's a copy job. Nice.
Look, I know your rear gets sore when Turn 10 is accused of copying Polyphony, but they sure don't help the case when they don't use a showroom style like they used in Forza 1 or 2, but a certain other game they seem to like to crib from, and then diss.
Look, I know you like to get your panties all in a bunch over a single game. But face the facts GT copies, as does PD. Learn to enjoy both games and accept critiquing of both games, and your panties might get ironed.
Forza 2 does look better than the F3 demo.

typical Tenacious D response. Funniest thing I have heard in weeks on the forums.
By the way, the physics feel the same too, with the MS wheel.
You should try the demo and the game 👍