Looking for inexpensive replacement for PS3

[mpstjohn]

I've been reading about these two models. The PQ for blu-rays seems great for the S360 and it does allow 7.1-channel surround sound, DTS-HD and TrueHD but from what I've read when upconverting DVD's its about average, also no internal storage for BD-Live content. BD-Live thru ethernet port is not a problem, my desk with ethernet hub is right next to my TV.

Though after having my first Sony BD player (BDP-S300) fail so soon after purchase (and the task of updating firmware took forever) I am a little standoff-ish about their products (I had something similar happen with my previous Sony sound system).

The Panasonic BD60 also outputs 7.1-channel surround sound, DTS-HD and TrueHD, BD-Live and 24p Cinema Mode. There's no mention of WI-FI so I'll assume there's an ethernet port somewhere on this thing.

In comparison to the Insignia I'd be paying about 60 bucks more, getting WI-FI and netflix streaming but no mention of 7.1-channel surround sound (which I do have) or DTS-HD. Still even then I'd be paying $100 less than a PS3. Would I have trouble outputting 7.1 surround sound if I opt for the Insignia?

So the choice comes down to WiFi with Netflix or better sound.

Can anyone actually compare the PQ and AQ of the Sony and Panasonic models? And can the firmware be updated through the ethernet connection on these models are do they require firmware updates by USB port? Do either have frame-by-frame tracking?