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The 360 isn't about to, but I think it will eventually, once developers (particularly JRPG ones) get a handle of HD.

I think this gen's consoles promised too much, and that's why we're getting JRPG's (among other genres) with so many technical issues (which weren't AS prevalent last gen).

Also, I would say that the 360's library at the end of Year 3 is arguably better than PS2's at the end of year 3 (God of War was 2 years away, Ratchet's best game so far came out a year later, Ico was there but no SoTC, RE4 was 2 more years away).

The only game I can think of that gives PS2 the edge over 360 by Year 3's end is Final Fantasy X, there are of course other games, but this is probably the 360's biggest problem, a lack of universally acclaimed JRPG's. Final Fantasy 13 may rectify this (assuming it's good).

In short: No, but the possibility of overtaking is there, but the PS2's library really went into AAA overdrive from 2003 onwards, I'm not sure the 360's (or any console this gen) will be able to do that.