MS could have easily released a larger GB hard drive sold separately for the 360 owners who are into downloading their HD movies and such without releasing a new sku. Instead they release an "Elite" system which doesn't cost much more to manufacture than the Premium (does HDMI and black plastic cost a lot?) and sell it for $80 more.
My guess is that this was also a way to trickle in HDMI and see it move onto their other systems like their Halo 360 and possibly beyond.
@mrstickball
Yeah I'm not sure if they got all the kinks out of the Elite. Brian at Kotaku just had his Elite crap out. Although it wasn't the RROD...just a broken disc reader.
I'm sorry if nobody else found the topic interesting. I am easily amused...Oh look a nickel.







