Seriously all this whining is bullshit. The 360 is an HD console, bottom line, if you don't plan on playing in HD then just buy a Wii and shut the hell up. How can someone even think to call it "punishing the consumer" when it's advertised as a next gen HD console? The consumer is punishing themselves if anything. As it's been mentioned, there are also inexpensive solutions for those who don't have a big flat screen and can't afford one or those that don't want to buy an entry level flat screen just for gaming. I'd say the least expensive way to enjoy an HD console in HD is to buy 20+" computer monitor from Newegg or one of those other online stores and the proper adapters from Monoprice if needed. Cost, anywhere from $100-$200 and that's if you don't already have a computer monitor. Then for another $100 or less you could get yourself this for audio http://www.amazon.com/Logitech-X-540-Speaker-System-Black/dp/B000JJM8XE (this set up bumps pretty good for the price) or even a 2.1 set up. Actually if you really wanted the audio upgrade, I'd suggest some nice headphones. I recently upgraded to a decent pair of 5.1s and I hate playing without them now (I usually don't). I gamed on an sdtv for a bit too long before I got a nice hdtv due to not even thinking about the computer monitor route. Don't underestimate a smaller scale set up either, playing on a monitor sitting about 2' away with some decent audio kicks ass. So for under $300 you have a full, pretyy nice little HD set up. I'd also be willing to bet that most people who try to bring price into this argument are already spending the money that could be used for an upgrade on all kinds of other shit.
I LOVE paying for Xbox Live! I also love that my love for it pisses off so many people.