I have PS3, my brother has 360
I know for sure the PS3 can play burned movies, don't know about the 360
I like the PS3 as it looks better, amongst other reasons.
One thing to note, if you're using wireless remotes PS3 controllers have a non-user replaceable battery, 360 uses AA batteries (I think). You can replace the 360 controller batteries in any case
I wouldn't recommend the 2yr protection plan. I've bought them in the past and they're not really needed. If whatever I have needs fixing/replacing it always happens after all the warranties expire...go figure
Recommending one over the other depends on what you're planning to do with it? will you be modding/hacking them? playing online? Using it mainly for games or movies or media server or other?
My ps3 shipped without a power cord, I called sony and the csr just told me to go to any computer store and buy a power cable for a pc tower/monitor. much cheaper than sony's branded cord