I've only played GH in the stores, embarresing myself at how bad I am at it. Definitely a great game. Just haven't decided whether to grab it for the PS3 or 360. The PS has a bit of an advantage since it has GH1 available. 360 only started at GH2 when Sony lost the exclusivity of it.
Rock Band uped the ante by providing a drum kit. (fuck the microphone). Both are great games to play with friends and compete.
Rock Band has weekly song downloads as well, whereas GH has been releasing them in packages. I think overall, Rock Band did a much better job and edged out GH 3.
If you get RockBand, get the full package.... you'll save money
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