Guys, guys, guys...
The 360 is an awesome system. Play Gears Of War, Elder Scrolls: Oblivion, Ghost Recon or Dead Rising and tell me the graphics aren't good.
There is more onboard video RAM than the PS3, or so I've heard, and games that are on both systems are almost indistinguishable.
The PS3 is going to have some great exclusives, as is the Wii, no doubt about it. They are awesome consoles, and as soon as I can get them I will.
The 360, which I've had for almost a year, is the reason I went out and bought an LCD TV. I game in 1080i, and it looks amazing. It also supports 1080p now, through a firmware upgrade.
The Xbox Live function is unparralleled. Yes, Nintendo has a wealth of 8/16/64 bit titles to release. Yes, Sony has online...somehow...even though the TECH demo of GTHD crashed the network...BUT! XBLA has a tonne of arcade ports from Frogger to Contra to Street Fighter II to Ultimate Mortal Kombat III to PAC-MAN etc...Also, it has a whack of new games developed just for the system, like Geometry Wars (gaming crack, I tell you) and Small Arms which is similar to Super Smash Brothers.
All systems have their strengths, which makes it so worth to have all three, if not two of them. Sony lost a lot of their exclusives like GTA and maybe even MGS now.
I'm not saying any of the systems suck AT ALL, I'm just saying that they all have their advantages.
The 360 does look crappy on a CRT TV compared to what it looks like in HD, but if you play in HD you can take advantage of 480i, 480p, 720p, 1080i & 1080p - AND the Component cables come for free with the system, unlike Sony's or Nintendo's.
HDMI would be nice, but the 360 is no slouch.
When the price drops a bit DJ, you should spring for one because there are a lot of games I know you would enjoy, and Imp - sell some blood or something and get an LCD TV (mine was $1299 but I got it for $799 on sale for a 32") and you'll be amazed.