The slots are for accessories in addition to memory cards

Wny not a little USB plug then for those accessories on the controller. The DC used them for rumble and memory. The XBox has that built in, and a microphone is the only other accessory that I can think of that has ever used that type of slot.

I find it hard to believe that this would be the decisive factor in what console you choose

It's one factor, and a somewhat important one. I am using this controller for hours on end, so I don't want to be annoyed by it. Sure consoles come with one controller only, but I still don't want to have to buy a 3rd party controller from the get go. I never have bought one in the past for any console.

It's no worse than any other console.
It's worse then the GameCube. Like Tony said, it's rather quick for a disc based system. I avoided the PSOne for it's slow load times. (Though the XBox is faster then it here)

It's too bad you're not able to get past learning a new controller and enjoy what is almost universally considered a great game.

If the controls suck, it's not a wonderful game. And looking at Halo (and not considering the controller issues), it's a good game, but not the second coming. Plus when Halo does come out for the PC, I'll be playing it on the same high resolution 27 inch monitor that I would be using the XBox on. But without the need for an HDTV converter box.

but I believe by this point next year the software catalogs won't be a major advantage for either unless you have a strong affinity for a particular game.

And by then I should be able to pick one up cheaper. Right now the average cost per game is just too high for me after adding up the total cost for the console and equipment.

And about the equipment part:

a) There is no denying that the hard drive is a valuable benefit.

Nope, no denying it. Now if developers would use it right

b) The real time Dolby Digital encoding ...

While it has the best DD out there, both the PS2 and GC can do it, though not quite as easially for the programmers by what I understand.

c) Best graphics engine. Do you not want this?

Sure a good one is nice. But it's not the end all be all factor.

d) Ethernet. We all know that ethernet adds a negligible cost these days, especially since the XBox is a PC based architecture and ethernet is built into the chipset. Ethernet is absolutely key to MS's XBox strategy

Just add the expansion slot, and developers will use it. Sure it's nice having it there, but I just find it pointless to include it on all the boxes out there when not many people will use it. Give me the option to buy the right adaptor, like how Nintendo is doing it with the Game Cube. (For me, the Dreamcast also had it wrong since I had to pay for a modem when I needed ethernet). Of course since it's in the chipset, it was easy. But I have complaints about the chipset and hardware design anyhow.

When you factor in not needing memory cards, the XBox is cheaper than the PS2 and not that far from the GC.

And factoring in the fact that I have to buy a decent controller, plus a DVD module to get it to the PS2 level, well there goes the cost advantage at $300.

And why port the PC to a console?

Why not? They can take advantage of commodity hardware, proven design, sunken R&D cost and pre-existing development tools.

Except they didn't There is not a single normal PC part in it. The hard drive comes close, but has some weird custom protocals to prevent easially changing or hacking it. The DVD drive is also modified, the CPU from Intel is a custom one based off the PIII core, and the graphics/chipset is a custom design from NVidia loosly based on the NForce. And as far as efficiency in design, it's definitly not there. Like I said earlier, compare the XBox to the Gamecube motherboard. They both have the same basic technical abilities, but one is way more complex, thus driving up pricing. Why NVidia didn't put slightly more effor into building a more integrated chipset is beyond me. That Hypertransport can't be cheap to implement. If ArtX could design a decent chipset/graphics solution, so could NVidia.

And every PS2/GC fan pushes the exclusive titles at me. If pre-existing franchises were all that mattered then Sony would have been stomped by Nintendo and Sega in the 90's.

The Playstation didn't take off until it managed to grab an exclusive game called Final Fantasy 7. That became the branding most people associated with Sony. MS still dosen't have something like this, and unless they get it soon, they will be flattened by Nintendo and Sony. MS really should have pushed for Sonic on the XBox.