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Fighting games make great group play games because they're fun for the audience, too. I used to work in a place that had Mortal Kombat and Street Fighter arcade cabinets, people had a ton of fun with those. Well, and NBA Jam.

I even remember this awful experience at a party once where I could NOT beat this girl who was just button mashing with a long reach character in Soul Calibur ... god, I still hate her for that.

Honestly, it sounds like you want multi-plats, so I'm not sure it will much matter which console you go with. The opposite of what you have at home sounds like a good idea.