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There's no way you can argue that it's OK for them to say "early models of the 360 don't have HDMI" when they are specifically comparing the Arcade system. ALL XBox 360 Arcades have HDMI. This comes off as saying that some 360 Arcades don't have HDMI, which is a clear lie. It's true that early 360 models (like mine) didn't have HDMI. Then again, some early PS3 models didn't have wireless.

The first rule of propaganda is to make the lies subtle. Always tell the truth, but frame the question so that the truth told is always the truth you want to tell. That kind of thing. This is not even remotely ethical, even by advertising standards (and those are some pretty loose standards.)