TalkPlayStation.com writes "So Xbox Live has been better than Playstation Network in terms of features and still is better but with Firmware Version 2.4 on the way things are about to change.
So when firmware 2.4 is released the Playstation Network will be pretty much neck to neck with Xbox Live. Firmware 2.4 will add in-game XMB and a Trophy system (Sony's answer to XBL achievements) so this firmware will pretty much overtake XBL ever so slightly.
Just think about the $50 a year fee for XBL versus Free for PSN. Not only that but Playstation Network is easily expandable through these firmware updates so they can probably add a lot more feature than XBL.
In terms of connection and online play there is nothing wrong with online play on the PSN, no lag apart from if your playing with someone with a crappy connection."