Too bad you can't deploy "DirectX" games to the Xbox-360, which is the main point of me posting this.
Too bad any real games made for the Xbox 360 are made in C++ and not C#.
Your point being? I doubt anyone in XNA's target audience is going to hog up all of the 360's cpu power in a useful way even if they are using the relatively slow C#. I am sure it is powerful enough for any hobby quality game you might want to put out. Note that a lot of the graphics processing has shifted to the GPU nowadays, freeing up CPU power for physics, network code and running bytecode :P
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