Haha, I guess thats a matter of opinion. I personally don't really play handheld games, whenever I buy a handheld system I end up neglecting it and never playing it. Hell my PSP only has 2 games which i don't play, instead I watch movies on it and listen to music.
So in my opinion I would say yes, it was dumb Btw don't think of 360 of just a console with just shooters and Live because I could gaurantee you, you would be selling yourself short. Thats assuming you ever got a 360 :P