2005 launch? I hope so. I reckon I would rather pay £350 for that PC/XB hybrid than £200s odd HDD less Xbox 2! I mean, with backwards capability, you've already got a nice sized library, add PC games to the list, and you've already got me! I mean £350, for a console, is a hefty sum to pay, but, seeing as a CURRENTLY top end PC costs in excess of £1800, you are really getting a good bargain!
If this is Xbox NEXT, MS will lose a LOT of money, but I would DEFINATELY buy it!