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A lot of these posts have already hit on the obvious games...

I would say check out the XBLA, I've spend quite a bit of money there even though I have access to both the PSN as well. I would recommend the following:

Alien Hominid HD
- The Gamecube game with HD graphics. Pretty tough but a fun side-scrolling shooter.
Bionic Commando Rearmed - Get this on PSN or XBLA same for both, just get it for the controller you prefer
Braid - Already recommended but I'll second it again.
Castle Crashers - Beat-em up goodness. A ton of fun if you got people to play local with you.
Castlevania SOTN - You've probably already played it but still worth throwing out there
Geometry Wars 2 - Skip the first game and go for this full blown sequel. Very good leaderboard integration and lots of different modes to keep you occupied. I still go back and play it even with all the new games out. Very addictive.
Ikaruga - Probably played this before but if not it's a great SHMUP
Pac-man: CE - Yeah it's pac-man but seriously at least try the demo before you discount it completely. I've had a blast with this game.
Rez: HD - Again another classic but still fun to go back and play today. HD graphics + surround sound = awesome experience.



Completed X360:
High Def Movie Collection