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I'm going to expand on this later, but for now here are my top two one reasons why the 360 sucks.
1. Bear with me here... it's a console; console's are primarily aimed at and bought by people who for one reason or another do not have a (gaming) PC. The reason these people probably do not have a gaming PC is because they cannot justify the cost of building/buying a PC with enough juice to run the latest games. Remember that demographic, and recall it again in a sentence or two.
Now consider this.
To fully (or even BARELY) enjoy the 360, you have to (yes HAVE as in "MUST"), play it on a HD telly. A standard telly never has and never will be capable of displaying the sort of resolution that makes games look good. TV's were built for TV signals, not hi-res computer graphics. Without the required resolution (1) graphics look washed out and lack definition and (2) text is blurry and best unreadable at worst.
Now jump back to that demographic you logged in your memory a moment ago, yeh, the typical "can't afford a gaming PC" console owner. What is the chance that such a household is likely to be in a position to own a large HD telly, when they can't afford a PC? I'd take a guess, NOT LIKELY.
Now, I know some of you will be reading this, with an Xbox 360 and a huge HD telly somewhere in the house, bully for you, that's great and I am jealous as hell, but this isn't about me (really). This is about selling a next gen console as a loss leader (offset against the game sales), to entice everyone of any budget to buy it, knowing full well that without a costly HD telly, the "next gen" graphics are not going to look next gen, and even worse, might play worse than the previous gen.... but that's for another gripe in another blog entry.
I'm sorry if this offends any 360 lovers, I just have a bit of a thing about the 360 right now, being as I bought it many MANY months ago, and have still never bought a single game for it yet, because nothing I have seen beats what I am playing on the PC, as an overall gaming experience, and I am going to biatch about it. Alot. Probably.
 Before anyone says "what about GRAW 360", I never bought it, it was sent to me.