I don't think your questions can really be answered in a concise manner.
The game industry is very difficult -- lots of hours, decent pay (but not per hour), and crushing deadlines around every corner. If you truly love it, you'll bear down and stick it out, despite its downfalls. If you don't, you will want out in a big way.
Porting games to XBL and PSN will be a really awesome learning experience, and it'll be punishing, in terms of hours you put in, and stuff you'll need to learn, even if you're a veteran programmer from almost any other industry. Its the last bastion of high performance, to-the-metal computing, outside of some pretty rare other vocations.
There is huge variance in the skills of people working in the industry as well -- especially at the "little company" level. Your company will be made or broken by the talent, and dedication, of the people you work with, no matter how pleasant their personalities are. Once/if you start working at a major studio, the average skill level really tends to leap ahead.
It will *not* be glamourous. It can be fun, but it really depends on why you're into it. If your idea of fun is "gruelling hours, punishing deadlines, moderate pay... for the sake of art and creativity"... if so, then you are set to love it. I'm not joking in the slightest. You'll certainly have a much different perspective as a gamer after working in the industry for just a little while.
That being said, it is the only industry (outside of research for the military and other gov't organizations) I have ever had a serious career in, and I've seen a *lot* of people, and companies, come and go. I will never leave, because my heart is in it, but I can understand why others might want to, and inevitably do.