Oh...do you mean the 360 has better custom chips? ...boy that sounds like a familiar point...
Not better per se, the 360 also did some weird DVD scaling in the past and it looked horrible.
Hiding scaling patterns (you can't notice by just looking at screenshots, but instead requires deep analysis) can excite fanboys, but may not actually improve image quality. I wouldn't be surprised that with the latest patch the game actually looks as good as identical.
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MikeB 
