I think the article was honest but incomplete, and should not be taken overly seriously.
(1)- More games will inevitably come, and the best is certainly not here now. PGR3 is probably the most noticably 'next-gen' title available as yet.
(2)- Microsoft will fix the problems, and apparently a .65nm version of the cpu is on the way for a replacement revision. The kinks will get ironed out.
(3)- As developer emphasis shifts dramatically over to 360, the millions of Xbox owners will almost be forced to upgrade, in order to continue to play their favorite game series. This will ramp up the installed base pretty quickly. By xmas '06 there will probably be too many games to play, instead of the situation now where a lot of early adopters are buying games simply because of the lack of choice.
(4)- As launch lineups go, it could have been better, but damn I know I've seen MUCH worse.
So, in the end, it's just a silly article. 360 owners, party on and enjoy your new gaming goodness. I hate Microsoft (and most corporations), hated my Xbox, and would rather own a new pair of jeans than a 360, but I have absolutely nothing against Xbox fans. Ideally, everyone who buys a console, I want them to be satisfied and gaming away happily.