Hehehe, well generation 1 XBox was definitely worth the money....eventually. My roommate has one, and I definitely appreciate the power, the networking abilities (we've had a few 6-8 man Halo sessions that were so fun they reminded me of the 4-player Mario Kart battles of yore) and built in hard drive for saving games (you can rent a game for a few days, play it, save, and then rent it again some other time and you still have your save point).
But when it first came out they were asking way too much money for too little. Like, why have to pay an extra $30-$50 (CDN) just so you can play DVDs when you could buy a PS2 that already did that from the get go? But XBox has proven value in the long w/ XBox Live and all the price drops.
At any rate, it will be interesting to see who gets out of the gate first, XBox or PS2. I think Xbox will be first, but I'm not sure if that will give them the advantage. XBox has an installed base now, but the PS2 base is much, much larger.
At any rate, a console can have all the power in the world, but it won't mean anything unless they have the exclusive, "purchase-deciding" games.