Yeah, I can't say I use the D-Pad all that often. When I play SF4, even, I use the analog sticks -- which is both good and bad in my experience. I don't see how the 360 analog placement is "superior" for most games, though. I think you could argue that it does favor FPS more, but aside from that, it's pretty much a push in every way. I've used both pretty extensively, and I wouldn't say one is significantly worse than the other, though I've always liked the Dual Shock.
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Simplicity is the ultimate sophistication.