1) A lot of the high-end Xbox games DO have better graphics than what the GC could create. The GC's processor could not handle games like Ninja Gaiden or Halo in their Xbox form. It's just a fact.
2) Personally, I absolutely love the Xbox's hard drive. In fact, I'll automatically buy whatever next-generation console comes with one. Not having to screw around with memory cards, being able to download content, and saving hundreds of songs all while still having 50,000+ blocks left?? I love it.