I'm on my second XBox 360. While it hasn't been cheap (my first one died a couple weeks ago, and I didn't have the extended warranty) it's been worth it.
Make sure you buy the extended warranty -- I know one guy who's on his 4th 360 --- there's a hardware problem with it (not quite as bad as the PS2 when it first came out --- remember all the drive failures?). The $50.00 insurance is well worth it.
When I got the first one on launch day I was really impressed with the improved graphics. I have a 50" HD wide screen and the 360's games really look great on it. It really has nice graphics.
I'm also a "lite" gamer but this thing is like a mini media station. I used to have a modded Xbox to stream mp3's from my computer to the home theater, but now the 360 does all that unmodded. It also lets you download demos and lots of other things so an internet connection is essential.
There are quite a few great games available now. See the 360 thread on this forum about the games. Right now my favorite is Battlefield 2, its lots of fun.
Whether its worth the $800.00 to you is totally subjective. I see no reason to wait for the PS3 or the Wii, though I'm likely to pick up a Wii when it comes out too. The PS3 is gonna rock but it'll probably be another year before you see top-notch PS3 games that really use its (greater) power.
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