No Xbox emulators? Cxbx and Xeon are two that come to mind. I guess you've been under a rock for a long time. Granted the emulators might not do 100% of all the things an Xbox can, but it's close enough. Also, with a computer, like you said, I can emulate any other past-gen console. So even more flexibility there.
Now, I do know that there are couple of emulators out there for Xbox, but nothing like for a normal PC. (That's one of the things I like about the stuff being developed for PSP: the emulators being made for it)
I can play most console games thanks to the fact that many are cross platform and many of the others can be emulated.
I never said that higher resolution equals higher quality. I said 'higher AND quality.' Now, most consoles promise killer graphics and super advanced graphic cards. Well, in reality consoles, such as the Xbox (since it is what you seem to have,) only have video cards that are usually 6 months behind what's available on a PC. So, not only can you play many console games at higher resolution, you can play them at higher quality.
Now, I know you can play some media files but not nearly as many as a PC. You can't play movs, mkvs, oggs, or flash, to name a few.