Hi Johnny,
As I live in Europe I have to bear with interlaced output on every console (except DC VGA-Box).
IMO PS2 interlaced output quality, is not necessarily worse than XBOX/GC interlaced output, but depends heavily on the developer which led to the big delta in output quality that is currently witnessed on PS2.
The only games from your list I've not played are Mark of Kri and Shinobi (and of course the unreleased titles). The output of the other titles is not bad at all, and certainly bareable.
I know how you feel regarding sound as I'm myself a bit picky in this area, as should anybody with a decent home cinema.
Well soundwise it is a downgrade from XBOX, but as IMO only few games do the XBOX justice in the sound department, the loss of 5.1 is bareable too. That's not an excuse, I much prefer proper digital 5.1 ingame sound over analog DolbySurround or 4 channel dts, but the games have to put the audio hardware to good use. In that respect Halo is still some sort of a (lonely) benchmark to me.
All in all just enjoy the good games you are getting with, they are certainly worth it.
(Do you have any buying suggestions for an XBOX title with great DD sound?)