Doesn't CHOW CHOW own a PS3 too? I don't want to recommend stuff to him if he might already own it on PSN and I have no clue what's on PSN...
1. Shadow Complex, 'Splosion Man, The Maw, Castle Crashers, Bionic Commando: Re-Armed, TMNT Turtles in Time Re-Shelled, Sam & Max Save the World, Sam & Max Beyond Time & Space, The Secret of Monkey Island, the Wallace & Gromit games.
2. They've added a bunch, but among my friends the most popular ones seem to be the lightsabers and Assassin's Creed uniforms. There's a pet section, but nothing too varied so far. There was an exclusive Chocobo pet but you need a code to get it. You can now actually win avatar accessories through a few games. Download that Halo experience thing, you'll get a free Halo accessory.
3. They're called XBox Indies now. The Arkedo series, I MAED A GAME WITH ZOMBIES IN IT!!!!1, there's a really cool Japanese Dodgeball game...uhhh, there's quite a few things. Be careful to avoid the non-games, though.
4. I don't play multiplayer stuff usually, but if you get Battle Fantasia I'll play you to get the multiplayer achievements lol