Most people have answered your questions but I'll reply anyways
-Games can be purchased with a silver accout, the xbox comes with three 1 month trials so you can play games online through that, also windows live games are free to play online so off the top of my head shadowrun and gears of war are free to play with a silver account.
-I'm not sure about netflix in canada but you would need a gold account to use it anyways.
-The hard-drive space all depends on how much your going to take advantage of the downloadable content on xbox live. If not very much then I would imagine you would have enough space to burn a game or two to the drive.
-Im too lazy to list all the good games but if you go to IGN they have an article listing the top 25 released 360 games and even though I disagree with some games overall its a good list. Oh an if your an RPG fan don't forget about Mass Effect.
-Yes you can purchase point online via credit card
The definitive evidence that video games turn people into mass murderers
