I had a peek at the Xbox 360 yesterday, didn't actually get to play.  I'm very disappointed with the graphics.  I think Call of Duty 2 was playing, and the only way I knew it was an Xbox 360 game at first was because it was playing in high-res on an HDTV.  At a glance, it just looked like a sharper Xbox or GameCube game.  On closer inspection it had nice textures and more detailed models than current-gen games, but if I wasn't a gaming nerd I don't think I'd be able to see the difference.
Now, in all fairness I think Call of Duty 2 is a port, and it's also not the type of game that I find visually appealing in the first place.  Lots of grey and beige.  Blah.  Even so, seeing it in person left me less impressed than I was before, which is pretty bad.  First-gen software?  I don't think that matters.  I've never, ever said, "Oh, this system had ho-hum graphics in the first generation, but I'm really impressed now!"  I've always been really impressed by the first-gen software, and everything after it was just a nice incremental improvement.  If anything the first generation of 360 software has already desensitized us to whatever improvements the second generation might make.
Anyway, that's a silly rant.  I don't think any of that makes the Xbox 360 a bad game system, but I do think it makes it an overpriced one.  What am I getting for my $500 CDN?
I've also noticed that there doesn't seem to be much hype for the 360.  Other than the promotion with Pepsi, I really don't see it getting the attention the Xbox did.  I remember seeing Xbox floormats and standees in practically every store that sold videogames for a couple of months in advance, and there were commercials dedicated to Xbox for quite a while before launch.  This time around, I have yet to see an Xbox 360 commercial on TV except for the Pepsi one.  Microsoft also seems to be shying away from hyping up the games - if they can turn Halo into a humongous hit, I don't see why they can't do the same for Perfect Dark 0.  I know I'm not the only person who thinks Halo is overrated, even if Perfect Dark 0 doesn't live up to the original, it should be hypable.
Very weird.  I think Microsoft can cope, but I doubt this launch will be as crazy as PS2's was.