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I'm no fan of the X-Box, but I'll give them credit where it's due. When it comes to the hardware, the Box blows the PS2 and the Gamecube out of the water.
The games, however, are another story. With the exception of a scant few, most X-Box exclusive games have ranged from extremely underwhelming to total utter shit. The better games on the platform are either ports from other systems, or PC games that were released on the console instead *coughHalocoughKotORcough* Sure, the graphics are slightly better, and the online play is more solid, but for good single-player games, you're much better off with a PS2 or a Cube.
Casual gamers are probably better off with an X-Box (especially if they don't have a good PC) I, however, will look elsewhere.
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