Sega is plenty smart when it comes to software (i.e., games). When it comes to hardware, they haven't done anything smart since the Genesis. That being said, what makes Sega REALLY smart is dropping out of the console market to concentrate on their strength, games.
I've been able to avoid the 360 for two years now. But my willpower is waning. I listened to a podcast with their picks for the top games of 2007, and I was reminded of how many 360 games I want to play. So I think I'm going to have to take the plunge.