Having owned both PS3 (Fat) and Slim and a DV137 and now DV139 I'd say I prefer the look to the upscaling from the Arcams.
The PS3 is technically superior (i.e. you will probably never see any scaling or deinterlacing artifacts) but with film material I always preferred the Arcam even over my XE1.
However, the DV137 did struggle with video material on occassion giving the odd weird artifact but is still good.
PS3 has a dac as well for 2 channel, probably awful though.
I just meant that for music it is a pretty good cd transport, and in my experience if the unit can play CDs well it will generally sound good with films too.
I was testing it into a pair of Meridian DSP5200 speakers, so not using the DAC, and it stood up very well as a disc spinner sound wise.