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Knights of the Old Republic is actually better on the PC so the Xbox only has a very small few titles now that aren't on other platforms. I honestly thought LIVE would take off and offline would drastically improve this year, so far though I have been proved very wrong.
If you have to choose one then go for PS2 unless you really want online gaming badly.
Why PS2?
Massive back catalogue
Play PS1 classic
Plenty of cheap games
Can, with extra disc, play all region dvds
Piles of exclusive games
Massive variety of games for all tastes
Really it comes down to your taste in games and you should decide yourself based on what games you enjoy. Maybe write down which games you like/want on each console, choose the one with the biggest list.
Live is good me hears, although I'm not bothered with it. And I can't get it.
GC is just better.
Muh.
If not then I'd suggest the GC.
I haven't played on my GC since christmas, that's how good live is.
I rarely play offline now.