I'll stop at these points:
1. Your Cube is borked.
2. Melee and fighting games in general, including the latest Fight Night on 360, are NOT good examples for referencing system power. Here's why: you've got a very limited, well-defined number of main on-screen characters, limited camera activity, limited view of the stage, limited stage interaction, and other misc. limitations on non-player AI and program physics -- unlike what you find in action-adventure games. As a result, it's easier for the console to toss graphics resources around, since there's not much in the way of platforming to a variety of surfaces, object collisions, NPCs, enemies and draw distance to worry about. There's only so many "Legos" to use, and AI and Fizziks do count as Lego pieces in addition to the obvious polygons and textures and effects. Haven't you asked yourself why fighting games seem to consistently pack more fine details than action-adventures?
If the graphics mainly look good when there's less "game" to play, then you're getting closer to a machine that only seems to shine during cutscenes OR fighting games (aka first-gen ps2), which is not what we want in general. Graphics should look *great* in a variety of demanding gameplay scenarios.
3. Games like Rogue Leader, Pikmin and Metroid Prime do a better job of defining Cube's first generation -- there's a lot more going on than just 2-4 characters fighting in the same hole or 2D-theater-stage.