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I've heard this discussion many times and I've actually done a bit of research on it.  From a tech perspective, one of our members here, Zarx, who really knows his sh!t when it comes to things like this, sums it up best in a post from a thread from about a year ago:

http://gamrconnect.vgchartz.com/post.php?id=4731562

Bottom line:  They're both very evenly matched on a technical level.  Even though the Xbox looks stronger on paper, the Cube was such a well designed console for its time and had very comparable (and in some ways even better) real world performance.

I'll say that personally I think the Cube's best looking games (the Primes, the Rogue Squadrons, RE4) edge out the Xbox's best efforts overall, IMHO.