Yes, the 360's remote is IR, I believe, so it will work. It can replace it. However, it wouldn't have worked for the original Xbox.

The Harmony is also a good remote. I think the Pronto 9800i is probably a good bet, however they are both good.

Within a similar price range is URC's MX-900 or MX-950. The advantage to these, in my opinion, is lack of a touchscreen (they have a non-touchscreen LCD). That allows you to use the remote one-handedly.

However, touchscreens are great for many people. They allow you to program custom color graphics, etc. The possibilities are endless!