If by "ironing out" you mean waiting for either every 360 with a problem to die or for the warranties to expire, whichever comes first, yes.
The 360 is finally starting to get some good titles. Nothing great though...not even Gears of War. Great graphics, yes, but not much else. Even the whoopty-doo multiplayer is about as simple as it gets, much like the story and simplistic run/hide/shoot gameplay. It gets way too much credit simply because as of now it is the most next-gen-looking game available. It's 3rd person Halo in a shiny new package with less features and a simple cover addition. People are also giving far too much credit to the 360 and nowhere near enough to the game's engine, the REAL reason it looks so good and plays so well.
My predictions are Zelda will be great but get little or no respect because of the fact that it is on the Wii, which will also get little or no respect because it seems too "kiddy" to most and the graphics aren't quite up to par compared to the 360/PS3.
PS3 will be licking its wounds for a while from the lack of any really good games at launch, but will eventually pick up steam and climb back to the top to (at the very least) directly compete with the 360. It will probably overtake it -eventually- further down the road if the past is any proof and they finally utilize the PS3's horsepower.