<< Doesn?t the Xbox just seem to be a low end PC which can connect to a tv set >>
Yes and no. Yes, it is lower end. It?s a 733 celly with and enhance NVIDIA chip. But you must remember, games can be optimized for only that console. Game developers can make a game so much better knowing what it will be run on. When pc games are made they are made for slower computers too; they aren't optimized for a gigahertz processor and a geforce 3 little on knowing the exact motherboard and how much/what type of ram.
peace
sean
edit- i'm a dumbass speller!!!