Anway, most of your points can easilly be applied to the other consoles, since they're basically upgrades. They haven't changed gaming, they've only moved consoles up to the level of mid-ranged PCs when it comes to visual eye-candy. Nintendo's Wii is the only console that has brought something new to the plate and it has all the potentional to evovle gaming beyond the current state of same, which MS and Sony are moving forward with. An upgrade is better graphics and more power, not a whole new way to game, which only the Wii can offer.
They do not bring the visual eye-candy up to a mid-ranged pc , try an absolute top-of-the-range-couple-of-thousand-pound-pc.
You wouldn't be in trouble because you didn't intend to get your iPod stolen and didn't intend to share the music.
Have a look at this video comparing a 360 to an uber pc (I'd recommend IE for viewing it I got a nasty error when i tried it in firefox)
http://xboxmovies.teamxbox.com/xbox-360/2898/Far-(links from this aticle http://news.teamxbox.com/xbox/10229/Far-Cry-Insti
and then say that the 360 doesn't hold up to an uber pc at all.
Why is it +3 funny?
Does that make it open source?