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i want my game to LOOK as much as the real thing as it feels to play. sound too. and while no match for a PC resolution wise, Xbox does allows for near HiDef 480p to TVs bigger than any PC monitor, usually connected to real non-computer surround sound set-ups. hearing MY favorite songs and the custom Hail to the Redskins in surround stadium sound is AMAZING.
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again, depends how extreme you want to go... they make 60"+ plasma TVs now with resolutions up to 1920x1280 (or 1440, forget how wide screen it is), and you can buy mackie HR824 studio monitors and their matching sub for surround sound... my friend uses event 6s cause they're cheaper... but they'll sound WAY better than any home stereo setup

<-- subwoofer, 3 feet tall, 1500watts peak... if you really want lifelike sound

(my band owns it as part of our sound reinforcement setup for live shows... in the off time all this crap gets used as TV/computer audio)
its a bit much for just tv/computer audio, but at least its not 900,000$ home stereo (with no other use) extreme...
at some point a 200$ xbox starts looking like a deal though