Currently, we're playing: Zelda (Occarina of Time), Animal Crossing, and Katamari. If my interest is in those games, for the most part, the 360 doesn't do anything like what I enjoy most. (Viva Pinata being an exception.) The pretty may be nice, but gameplay and getting something that the kids can do as well is important too: The 360 probably does not really fit that bill. It's good at being pretty, and not at being innovative.
I'm not buying anything today, in any case, but I think that maybe a Wii for Christmas could be the right way to go. I'll have to think about it more, but it does seem kind of fun.