It takes some getting used to. It's also at the level of where the PC version was aroudn beta 1.4 or 1.6 or something like that, so, no pistons or anything like that. There's a couple things in from future updates (better lighting, multicolored wool, some other stuff--I'm not sure of all of it so you'll have to google it).
It can be a lot of fun to play splitscreen with people... but then the text and the items in your inventory get really hard to see unless you have a fairly large TV or if you are sitting close-up. On XBL, though, it'd be pretty sweet.
The big advantage, I think, is easily playing multiplayer. Let's face it, setting up a server on a PC can be a big pain. First you have to figure out port-forwarding or Hamachi, and then get it set up, etc... the 360 version is simple. Sure, you can't mod it (yet) have texture packs or skins (yet) or configure plugins for a multiplayer game (yet), but it's easy. Log on, go to your saved worlds, hit "online mode" ( on by default, actually) and play.
I think the thing I enjoy the most about this installment, actually, is the simplicity. It's almost a "back to the basics" approach--and it features a tutorial, something noticeably lacking from the main game, although many would argue that a lack of a tutorial adds to the feel of the game. (Nate Dazombie got an article on the subject to the front page of Bitmob, actually)
It's also only 20 dollars, making it about 6 or 7 bucks cheaper than the PC version, interestingly enough.
To answer your question, I do enjoy the 360 version, quite a bit. I prefer the PC version, but when I just want to pick up something and play with some people without the annoyance of setting up a server, something I seem to be incapable of doing on my desktop for some reason, this version really shines. The only problem is that I don't know anywhere near as many people who play it on the 360 version. Yet.