Cropped sensor cameras (Rebels, 60D) = Either EF-S lenses or EF lenses.
Full frame cameras (5D3) = EF lenses.
I used a 24-70mm f/2.8 on a few crop sensor cameras (including the 40D) before I switched to full frame cameras. The results are fantastic. The lens is a bigger factor in image quality than the body it is put on.
The advantage of buying EF lenses is that if you decide to get a full frame camera later, you aren't stuck with lenses that aren't compatible.
Another advantage of EF lenses on a crop sensor body is that you get a 1.6x magnification advantage. If you have a 200mm lens, it is now a 320mm lens on a cropped sensor body. The downside, of course, is that it makes it more difficult to go "ultra-wide". To get a 16mm equivalent on a cropped sensor camera, you need a 10mm lens.
EF lenses on a cropped sensor camera will also show less vignetting than it would on a full frame camera.
A disadvantage of EF lenses is that they will be bigger than a similar EF-S lens. This also causes the cost of manufacturing these lenses to be higher.
So despite the fact that your cousin has the better camera, you have the advantage of a better lens selection & universal compatibility with all Canon SLR lenses made from 1987 onward.