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PS3 generally has the better d-pad (just talking build quality). But you can make the Xbox controller work.
As said, people are used to playing with sticks, so they play with stick. For Soul Calibur there is no advantage to using an arcade stick. (Personally it may even be disadvantageous, what with all the double-tapping involved and the large throw on Sanwa joysticks...)
now, for 2D games, that's something else entirely. There are techniques on stick you can't easily replicate on pad; at the least, not holding a pad in a conventional grip, anyway.