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Don't get me wrong I like PSX2, it's just not able to handle this type of game and it's power.
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I don't know about that. Once we get to third and fourth generation PS2 software, you're going to see some amazing things done with Sony's console. Xbox has the additional advantage (besides its faster processor and GPU) of a better design architecture, allowing incredible things to be done with first generation games whilst PS2 designers struggle over the console's initial bottlenecks.
By the time PS2 goes the way of the Saturn, its game designers would have surpassed the graphical quality of the XBox's release library.