I jumped on the hype because I was absolutely let down by Microsoft's nickle and dime, corporate conglomerate attitude. Yes, XBL was awesome and worth the money. And yes, the UI was buttery smooth. But in the end, for someone who has grown up in the industry since the early 80's, the stench of greed and BS was just too much for me.
Sony may not be Nintendo, in that they're more of a business. But they atleast GET gamers and understand that that's the most important thing. Microsoft just seems like another Wall Street capitalistic machine.