You guys are missing a huge concept. For example, my PC (specs below) costs me over $1500 and it's never ever been "top of the line". There are still a few times where I cannot play games maxed out for that particular reason. Now take a look at the XBOX 360. You can have High Definition gaming (full AA and AF) with a GPU that is on par with current PC graphics cards and raw CPU power for how much? Less than $500? That's one heck of a deal to me. You guys build me a PC that can do that for $500 or less and I'll shut up.
The MTV special last night was supposed to "unveil" the system overall, not any detailed specs or things like that. Heck, what celebrity or MTV viewer cares about what kind of GPU the 360 holds? E3 is next week and I'm 100% positive that they will release more information. Also, all of the specs of the 360 aren't set in stone yet, some are still "subject to change" (sorry no source, currently looking for it).
And as for the games, how many of those games for the 360 are final and ready to sell at this very second in time? None! They are still in alpha, beta stages. If you were creating that game and all of the "eye candy" wasn't implemented yet, would you want to show millions of people how crappy your game looks? No way. That's why they didn't give you full screen action (or any action for more than a second). Most of the games I saw last night didn't impress me very much either (Quake 4, CoD2) but other games (NFSU:MW, Ghost Recon and Perfect Dark) looked very amazing.
Since we still don't have ANY details on the PS3, I cannot make a good judgement on which system will kick the other one's arse.
PC gaming isn't dead. IMO, the XBOX 360 does make a small threat to PC gaming in the fact that consoles are a whole heck of a lot cheaper. The 360 is 1/5 of what my PC rig cost me and is on par hardware wise. YIKES!