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Depends on the pricing for future drives.

$99 for 120GB, $149 for 250GB seems reasonable compared to previous prices ($99 for 20GB, $199 for 120GB) until you compare that with the $199 price of the base console.

The fact that a 500GB 2.5" drive is well under $99 currently doesn't exactly help with that whole value perception thing either.

Installations would be the main reason for the extra space since I don't use the Xbox to store media. Beyond that, it would only be used to collect demos.

So the next HDD I buy for the Xbox, may well end up being whatever drive is currently being shipped with a new Xbox if and when I need to buy a replacement console.