Why is the Xbox 360 arcade SKU a bad deal?

[Dolla Dolla]

The Arcade is not a bad deal at all, especially considering it's the same price as the original core, which didn't have HDMI, a wireless controller, 256 memory card, and 5 arcade games.

But, if you plan on getting onto Xbox Live, I do believe you need to have a hard drive.

Edit:
Actually, you only need the memory unit that comes with the 360, I just looked it up.
http://www.xboxlivetheguide.co.uk/XBoxLiveTheGuide2.php?department=GetStarted

So, you can get online with the Arcade SKU. The memory card is sufficient.