Wow, I thought all the X-Box/PS2/GameCube arguements ended around Christmas time 🙂 ... I guess I'll put in my 2 cents for old times sake ..
If you have the money to only buy one console right now, my choice would be X-Box. I personally own an X-Box and a PS2 (and a Dreamcast, but thats besides the point now).
What advantages does the X-Box have?
1. Built in Surround Sound support. Dolby Digital 5.1. Yes PS2 can do DTS-Surround which is really sweet, but it takes up extra processing, where as the X-Box can do it in hardware. (Always remember, performing calculations in hardware is better than in software.. Sortof like playing a game with a 3D card versus playing one using Software rendering).
2. Native support for 480p (HDTV) (plus *TRUE* VGA Adapter support with a little coersion, or wait for the official VGA adapter) and future support for 720p and 1080i (in 4:3 or 16:9) ... PS2 may have 16:9 support, but it will never render anything higher than 640x480 Interlaced. Every single X-Box game on the market support 640x480 Non-Interlaced, and future games can support up to 1280x720 Non-Interlaced (aka 720p 16:9).
3. Good game selection, X-Box has a good game library considering how long its been out. If you're hesistant about the gaming library, wait until more games are announced in May. Games like Halo, Rallisport Challenge, Amped, Wreckless, DOA3 have all been enjoyable for me personally. Halo still provides lots of hours of replay value due to its multiplayer nature (and online play if you have broadband and a PC). Unreal Championship is another game which I anticipate will be great... plus it will sport official online play.
4. To respond to comments that the X-Box is defective, and crashes all the time, I have never had my X-Box crash on me due to heat or anything of the sort. There are games out there which have bugs and crash, but PS2 has the same thing! I've had my PS2 crash on me more than my X-Box. My X-Box has worked 100% perfectly since I bought it on launch day (I bought my PS2 on launch day too, got lucky enough to get one)... I'm sure there are defective X-Boxes out there, just like there are defective PS2s out there... but I dont think either one is more likely to break.
5. Controller complaints - if you've got small hands, buy the X-Box S controller (aka Japanese controller). I own one and its great, the original controller works just fine in my hands though (and I dont have abnormally large hands or anything like that).
Dont get me wrong, PS2 has great games, and I love them (MGS2, GT3, GTA3 etc).. But for the same $300 you get so much more with the X-Box, and a handful of good games immediately (dont forget when PS2 launched in October of 2000 there weren't any real good games, it took almost a year before GT3 came out, and more than a year for blockbusters to come out). I'm pretty sure X-Box is here to stay, especially with its good console sales here in the USA. And with great games already out for the X-Box, I can only imagine how many great games will be out when the X-Box turns 1. Don't forget, with the Nvidia programmable pixel shader, programmers can customize their games to do certain special effects. This means that X-Box games will get better and better and the possibilities of new whiz-bang features are countless. So I dont believe that the X-Box has reached its peak in graphics capability already.
BTW- At least X-Box has FSAA, PS2 really doesnt have anything of the sort (its more of a hack for PS2)... (And X-box w/o FSAA has less noticeable jaggies than PS2 does!)