When the X360 works, it's great. I like the interface and the XBOX live with downloads is a nice touch. I've thought about the Wii for my wife and kids. It (Wii) seems to appeal to that demographic because of its intuitive control whereas I like the multi-button/trigger control. And though I had a PS1 and PS2, I jumped off the Sony wagon this generation. I'm sure it's an awesome console but I like my 360 (when it works.) At least MS stepped up and extended the 360 warranty to 3 years.
Just bought an XBOX 360 with a few extra upgrades like the play-and-charge kit, an extra 2 controllers with play-and-charge, a wireless network adapter, 2 x 512MB memory cards, and an extra 120GB hard drive (it came with a 15-20GB I think?). Also got 12 months Gold to XBOX Live. Looks great on a 50" Plasma. Have more accessories to get yet.