I wasn't exactly expecting art from MS in the first place, its better than the monsterous heat sink looking Xbox too, and I'm sure its probably half the damn weight (hopefully).
What I don't like about the design:
The system itself looks rather top heavy for a vertical system, and the angled shape would just be obnoxious when vertical. I don't typically stack on systems and whatnot if I can help it, I just don't like the slant, especially because when vertical it makes it seem like it could be tipped over rather easily, though I doubt thats an actual danger, MS wouldn't be that stupid.
The white theme I also don't much care for. It's a decent option versus black I guess, but the overall feel, with the white color and large power button leave it looking like an iPod theme knock off, and a bad one at that.
Also, the camera looks totally out of place, like some refugee from an 80's "electronics of the future" simposium. It has a very blocky profile that just doesn't match well with the system's and controller's theme of smoothed and rounded angles.
What I do like:
The controllers being wireless is damn sweet. Everyone should do it next gen, but at least one of the other two 1st parties will opt not to unfortunately. The system is definately a step up from the original Xbox asthetically, and including a camera, even one that looks like it was made by some Chinese knockoff factory, is a nice way to add features without adding much cost.
Honestly, it doesn't much matter to me, I wasn't planning on buying a 360 right off anyways, not until it at least drops down to $200. Odds are I'm still holding out for the PS3 to be my first console of next generation, and its pretty likely that a 360 will be the second. Casing design doesn't play a big factor in that though, the hardware inside and my faith in Sony to once again deliver the best in 3rd party content, as well as new interesting first party content, is the major factor.
However, I expect the PS3 to look a hell of a lot better than this, but thats just because I hold Sony to a higher standard when it comes to asthetic design. The PSP, PSTwo, PSone, and a lot of their HT compenents set the bar high for them, if they can't at least match that level on the PS3, the biggest system release they'll have for the next 5-10 years, I'll be disapointed.