Most definitely. The look is amazing, and the sound design is absolutely incredible. I'm not even using EAX, but the reverb effects they have on this thing are stellar. I'm almost wishing that my wife wasn't "playing" it with me so that I could be using headphones and getting even more immersion out of it.
Again to Cobra, the best I can say is do your best to think outside the box. Get creative, try weird things. I can already think of several tactics that probably wouldn't have occurred to you. At the point where I'm at, I was literally able to turn a single hallway into a gauntlet run of death on one occasion, and it took quite a lot of futzing around, but once I got the BD to come at me through it... it was just beautiful.
I'm starting to wonder if not having played SS2 beforehand might make this one a little more dense and hard to get into? That doesn't seem right to me given how much more accessible it is than SS2, but I guess it's worth thinking about. I mean, the same creativity in environmental stuff wasn't really present in SS2, but you definitely had to think about how to combo tactics and stuff. It's just a lot more free-flowing in BioShock since you can essentially change your character's loadout any time you visit a Gene Bank. There have been several occasions where I just ran out of a fight or potential fight, went to a Gene Bank because I had an idea, swapped out all my stuff, then went right back and tried out whatever idea it was that I'd had.
EDIT - Jeez. This thing has now 16 perfect (100) reviews on MetaCritic, and they didn't even have some of the publications I listed before in this thread. It's got a 96% average rating for the 360 on GameRankings (and 94% for PC), with a 97% for 360 on MetaCritic (and 96% for PC). I find it somewhat odd that it doesn't fare as well on PC stats-wise, given that it can look better than the 360 version (and yes, it really can, I've seen them both), has a much-improved interface on PC, and doesn't appear to have a lot of bugs, if any at all. Maybe it's the authentication/copy protection stuff that's knocking the scores down?
EDIT x2 - Yeah, I think I can officially say that I feel this is the best FPS ever made. It did take a little time to get off the ground for me. I was enjoying myself, but not to the insane extent which I am at this point. Once I made it to Arcadia, things just completely turned around. What was fun and cool before just increased a hundredfold. It showed the game has more environmental tricks up its sleeve, has some thematic variety, can really give you the opportunity to do things in different ways (I just found myself using all kinds of different methods moving through the area as I went), and does eventually sort of ask you to specialize your character in certain regards. While you can change it, it pays to use your available resources to focus on certain things, I think. Also, the story was interesting before, but has continued to deepen at a consistent rate and has been very reliable in terms of delivery and pacing. I'm more interested now than I was. There are again more allusions to Atlas Shrugged, but in sort of warped, reversed fashions. It's quite fascinating.
I would say there are indeed things that other FPS games have done better than BioShock, but I've never enjoyed a shooter quite so much as I'm now enjoying this one. It's more than the sum of its parts, even though that sum is a pretty beast in its own right. For those who still have doubts, maybe try to push in just a little further and see if things don't pick up for you. I feel like I still wasn't quite in tune with the way the game's different facets come together until a couple hours ago, but now I'm starting to really think on my feet and act quickly, abuse situations to my advantage, enjoy different variables in the world, and the whole things seems to have adopted a much more rapid-fire string of excitements for me.