You don't have to chip an Xbox just a soft mod. Its gotten to be easier than the old Dreamcast days. The Xbox also make great media extenders. I can keep my videos on my pc and stream them to my TV through the Xbox not to mention all of the emulation and old pc ports to the xbox.
If you don't have a Xbox you better get one because the market for the used ones is already starting to go back up and I suspect just for this reason. It is close to perfect for a homebrew console.
The PS3 running Linux to my understanding only runs slightly faster or about equal to a 800MHz PC and it costs 5 times as much as a used Xbox.