2mbps connection and my online games never lagged on PSN.
Live is good and in some aspects better than the vanilla PSN. All that was set to change with the introduction of PSN+ when this happened. Anyhow there is a lesson for people here regarding Personal credit info security. Be it any network, never store your credit information online ever. Enter only on a transaction basis.
Deleted user is right about the exclusives etc wrt Microsoft's financial power. Otoh a friend's cousin works for Microsoft gaming division. That guy is a part of that new motion sensing control system development team for the 360 (the name escapes me atm). Those guys take apart rival systems as a part of their job and he admits freely that the Ps3 system has got a lot more potential to be exploited by developers IF they put their mind and Sony it's money on exploiting it. He says that even current PS3 exclusives do not take full advantage of the juice available in the console.
If he is correct then judging by GOW, Uncharted and GT5 etc any game which really tried to use all the capability offered by the PS3 would be bombastic.