Assuming the pics are accurate I guess the design is supposed to fit in with your normal AV gear by the TV given the aim of making it a multimedia centre for Music, DVD, photos etc as well as gaming.
Anything wild and whacky just ends up looking poo a year or so later - understated works for me - (see the Ipod for example). If I was Bill G I'd be wanting to make XB360 as powerfull as buggery with some clever co-processors for video/sound etc. Awesome games from top publishers, wireless/broadband enabled for t'internet/controllers avoiding cables all over the place, easy to use, easy to sync up(or stream) your music from Media Player 10 (or whatever), a doddle to copy (or stream) your photos from your digi video / stills camera on to it, use the webcam/headset for VoiP/video calls, and make it as unobtrusive as possible so it becomes just another standard bit of AV kit in your living room...
Funky styling looks good in a teenagers bedroom, it just looks out of place in most living rooms, last thing you want is people unplugging the XB to "put it away".
To be honest I don't doubt the games will look awesome (as will PS3 & Nintendo next gen offering) , rivaling for �300 (or whatever) what I need to spend �1200 on a PC to get. Trouble is I already have a PC, the real hook for me will be the games plus the potential for finaly getting a powerfull purpose designed multimedia center into the living room to go with the TV/AMP/Sky+/DVD etc etc