The X-Box is large, bulky, and has a huge controller, but that's beside the point. There are a few good games on it, such as Halo or Counter-strike. These games are out for the PC but need a $2000 machine to run, the X-Box costs only $100-300.
The reason most people hate it is because
A. it's made by Microsoft
B. it's huge
C. the games they played must have sucked
Just because its made by Microsoft doesn't automatically mean it sucks. Halo was made by Microsoft, and look how it's doing, hmm?
The controller is an exact duplicate of the PS2 controller, just substitute the Black and White buttons for L2 and R2. Hell you could probably play the X-Box with a PS2 controller if it had the right plug.
So, in closing, I think that the X-Box is probably the only good thing made by Microsoft.
Since programmers didn't like the XBox when is was announced, Microsoft bought a bunch of companies to make exclusive games, such as Bungie and Rareware.
Also, the system in competition with the Playstation 2 for people who only buy EA sports games.
A 733MHz Intel Pentium III processor and nVidia GPU combined with a regular 3.5" desktop hard disk drive and a modified Windows 2000 operating system constitute a PC by another name, but, perhaps, smells sweeter.
The result - a hot, noisy and (as noted above) OMG HUGE!!!1 LOL - console, but one with remarkable gaming power which secured a solid second place next to Sony's somewhat overhyped PlayStation 2. While the PS2 took the lion's share of the market in the fourth-generation console wars it was far from the walk over predicted in the popular press and Microsoft easily displaced Nintendo who were, a priori, predicted to take a comfortable if disappointing second place position.
The XBOX 360 has broken the trend somewhat, ditching the PC architecture and Windows-derived operating system in favour of something much more console-like (and sadly less OMG HUGE LOL!!!1) and, ariving a year earlier to market than the currently missing-in-action PlayStation 3 may yet provide Microsoft with the dominant position in console gaming. But at this stage the smart money is on a three way tie in the fifth generation console gaming market.