It seems to be a decent deal IF you know without a doubt that you would buy both Xbox Live AND Game Pass subscriptions for the next two years. That probably fits a lot of the Xbox demographic, to be honest. I know a guy who never cancelled his Live membership after he sold his 360. It sat on his father's credit card for YEARS without him even using it, until he got an XO.
Personally, I hate contracts that take away your options for an extended period of time. I'd never do this for any console unless the savings was extensive. Besides that, I can't imagine buying an Xbox before their annual holiday discounts.
Microsoft has been after service models for years. That's their goal for pretty much everything. It's one of the reasons I keep my distance from their ecosystem as much as possible.
