No, it's unplayable, and deserves to win nothing.
(Also in reply to xande as well) In case you couldn't infer that I'm a PS3 player myself, I am. I noticed a video floating around this thread where someones save file was 11mb and lagging unbelievably. My save file is close to 13mb, and only starts with the real frame rate drops and lag after at least an hour in. I've also found several solutions (temporary as they may be) to the lag issue for PS3 users, besides restarting.
1) Delete your game data for Skyrim under game data utility. Re-install and it should run better. I haven't tried this personally for Skyrim, but its worked for me on F3 and FNV.
2) Clear up your game data utility. I'm not looking for flamers saying "installed game data has nothing to do with RAM," but as there's no way to clear RAM on PS3, this is the next best solution. I cleared up my game data utility from ~3 gigs open to ~10 gigs open. The game DID run marginally better. But who knows, this might've just been a one-off for me.
This is for a PS3 slim 120 gig bought October '09 BTW.