I agree, in trying too hard to be "hip" and "cool" they have settled on the worst console name in history (if this turns out to be true).
First of all, there is no point to the name. Think of most console names and how they have naturally either shown a progression in technology (nintendo 64's 64 bit), shape (as in the gamecube or sp), or simply the natural indicator of a successor (PS2, SNES). What does the 360 indicate? Unless it's exactly 360 times more powerful then the xbox or it's design is circular it doesn't make much sence.
Imagine having to say, "lets go play my xbox 360." A bit long winded no? Plus I'd imagine it's lameness would get annoying after not too long. You could, however, just say "lets go play my 360" but that just makes it's rediculousness even more apparent. I guess a lot of people will not question it at first but after so long people will wonder, "why on earth that name?"
I don't know, maybe I'm in a lousy mood because I'm in the middle of an all-night homework marathon...