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Yea... maybe... but Xbox has more engine power... A LOT MORE. So for me its devinatly X-Box!
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If you look at games like Soul Calibur 2 and whatnot that were released on both PS2 and Xbox, the downgrade in graphics is minimal. Plus, titles like Silent Hill 3 look a helluva lot better than a lot of the games released on Xbox.
Therefore, I have no doubts that the PS2 version will look and play just as well as the Xbox version. I just think that the audience available on the PS2 would be more accepting of an oddworldly title. As we saw with Munch's Oddysee, Xbox gamers don't tend to jump on uniqueness.