Kela,
The X-Box is considered to be more powerful than the PS2, generally. I have a PS2, but I'd agree, given what I know about the hardware. The X-Box hardware is a Pentium III 733MHz + GeForce 3. There are some tweaks thrown in as well, such as RDRAM memory architecture. Any high-end PC w/ GeForce 3 would beat the X-Box. An Athlon 1.4GHz + GeForce 3 would have more than twice the CPU power of the X-Box. I'd wager to say that any of the G4 towers currently being produced (+ GeForce 3) are more powerful than the X-Box w/ it's P III 733. And certainly (just looking at the specs) a high-end PC or high-end Mac even, with a GeForce 3 or Radeon II can outperform the PS2. But yes, there's certianly more console games--the audience is huge, these $199 and $299 consoles are not general purpose machines, and as such can command low price tags that many can afford, and the market is deep.
Consoles are not the ideal gaming platform for a number of reasons. There's challenges and issues to getting DSL/Cable connectivity with most consoles--and more likely a cost involved as far as charge/server use, etc. Consoles are limited to 640x480-ish resolution (limited by the TV) while modern PC's and Macs can happily move polygons at 1024x768 and even 1280x1024 (1600x1200 is there as well, but obviously you take a hit). The clarity of a 19" Trinitron RGB monitor running games at 1280x1024--that's a whole different experience than console gaming. Also, whether or not you like FPS games--many do, and there's nothing (and I mean nothing) that works better as a controller for them than a keyboard and a mouse, used togehter. Every console controller is inferior.
I've got a PS2, and enjoy it (and GT3), but I'd much rather be using my Mac as a games platform.
blakespot