Xbox can handle 1080 video just fine if you actually wanted to do that
but as a media player the wii is rather sucky to be honest anyway, though this is poassibly more because of what is available rather than how powerfull it is
Specs are about on par mostly
Xbox CPU: 32-bit 733 MHz (Intel Based)
Wii CPU: 32-bit 729 MHz (IBM Based)
Xbox GPU: 233 MHz (Microsoft and Nvidia based) (I would go into more detail but as there is no comparison info there is no point)
Wii GPU: 243 MHz (ATI based) (Not much in extended detail for this chip)
Xbox System Mem 64 MB
Wii System Men 64 MB
Sounds great an all and does put the Wii on par ish spec for spec wise but there is also a lack of information for the Wii's specs to do a true comparison, specially the GPU side and that none of it seems to be of any sort of standard we are used to seeing
Graphics either have not been taken advantage of very well for the Wii or you have already seen it at it's best, that is good for alot of games but still at 480p, the Xbox has a number of 720p games and a very small amount of 1080i games though most of the 1080i games are simplistic in the graphics department mostly, though even though 480p seem the best on the Wii for Wii games a few of those have graphics that would out do some of the older games on Xbox but only some as others do have very nice graphics on Xbox, this may be in part the style
Emulators, and unofficial game ports ect seem to have more enhancements on the Xbox to what the Wii offers
The Wii can output 480i/p (576i PAL system display though most PAL games support 480 or atleast have an option if 576i is even supported plus widescreen modes for lots of games) I am fairly sure nothing higher is supported
Xbox supports 480i/p (576i) 720p (Just a small number of games support this though) 1080i (very few support this) [Most games lack Widescreen but there are a number of games that do, more a sign of the times that anything to do with the power of it]