Sounds like you're more taken with the prospect of the deal then what you'd actually be getting, which means you probably shouldn't buy it if that's the only reason. Peer pressure isn't a good reason, and then you'll need to pay for Live Gold as well as the games they want to play, whenever you buy or rent them, and if you're not big on shooters it may be things you don't particularly like.
You don't need a 120GB for arcade games either, unless you're really lazy. I've had my 20GB (In which only about 13GB are actually available) for about a year now, and after spending about 12 mins cleaning out some junk on it a few days ago I still got 7.1GBs left, and you can re-download anything you purchase.
Also you say your Wife doesn't approve, you have a backlog of games on your other systems, and you have new house expenses to contend with. Also deal or not, you'd still have to buy games and probably some other accessories (depending on what you want) for your 360, so like any console you'll end up spending more than just what the console costs.
Plus I doubt this will be the last deal Microsoft makes. There’s a thread on the front page where someone says they’ll spend themselves stupid to win this silly console war. Hell they’ll probably be even better bargains next Christmas.
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