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I would rather play the HD consoles on HDTV, but if I didn't have one, I don't mind playing them on SDTVs. Both PS3 and 360 are HD game consoles, PS3 is capable of output HD signals through both digital (HDMI) and analog (Component) connections, while Xbox 360 can only output HD signal through component connection... I am not sure who deserves HD more, since both are HD consoles, but I know the PS3 digital HD signal through HDMI 1.3 will have better quality and more color depth than the analog HD signal through the 360's component connections.
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PS3 120 GB w/ Kubuntu. Xbox 360 Premium. Wii. PSP
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