No, the majority of developers are starting to say the GC has the more potential from a development standpoint, and even a developer that is an acquaintence(sp?) of mine concurs. Another developer I've spoken with hasn't start developing on the GC, but he favors the Xbox over PS2. The Xbox, to me, seems to have the least, because it's all stuff developers have worked with before, so it should be mastered much earlier, which could lead to amazing-looking games right off the bat, but we won't see as many jumps later on in the console's life (which isn't necessarily a bad thing).
Sure, PS2 games will get better graphic-wise, as it is with all consoles, but as many have stated, who cares. The quality of games is poor
at this point, and that's what counts.
BTW, Sony didn't stick a DVD-ROM in to jack up the price, they used it for capicity like you said, and playback is used as a selling point for the console. Heck, they lose more money because of it, since they have to pay a fee for each console shipped in the US with DVD playback capabilities. This is why the GC is not going to have DVD playback capabilities..
As for the remark about saying no one can counter 'A lot of devs saying the PS2 has the most potential', the same can be said about that remark. That's just heresay, and I don't see you as a Console developer

But, I'm not going to play that game, because that's just poor debating..