Among other things, they note that the hardware designs we've seen will likely change before launch, native 1080p games with full effects are unlikely, and that launch games are being designed with a 10x DVD drive in mind. There is also much praise for Sony's machine, with developers noting that it will probably be capable of handling more effects and geometry than the Xbox 360. These statements aren't surprising, 720p will likely be the sweet spot for gaming this generation, anything more than that increases memory needs to an almost impossible level, but the PS3 should be able to scale to match whatever your TV accepts just like the 360.
Also worth noting is that the developers they spoke to are targeting a fall launch as most likely. Other recent PS3 news from Joystiq has suggested the 2x Blu-ray drive it is most likely to feature will be the same speed as a 12x DVD player. If developers actually do make a 20GB game we could be looking at loading screens for quite a while. The development kit Kikizo looked at had no Blu-ray drive so they couldn't test those capabilities at all.
[Via Evil Avatar forums]