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L.C.E.C. on 22 June 2008
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Not a good idea... Reasons:

  1. Would not work on Wii... Harmonix is lazy about Wii ports.. Would piss of Wii users even more...
  2. Not every person with an XBOX has XBOX LiVE, especially Australia and the European countries
  3. Hard-Drive space - Sure, many people have plaenty of hard-drive space, but with a wholesetlist (80+ if they are going to compete with Guitar Hero 4) on their hard-drive would take up a lot of room, and many people wouldn't be able to download as many songs... (Excluding the lucky "Elite" owners)
  4. 2 versions of the game per console... 2*3=6, 6 versions of the game is not likely and would drive up production costs (Harmonix/EA would have to guess very well on who would be the DLC people), which would make it too risky
  5. 2 versions of the game wouldn't mix well online... which would limit who could play with who...
  6. Most people are going to want to take the game home, pop it in, and play, am I right? Well, downloading 80+ songs is going to take some time, I mean, I have FiOS, and it took me about 30-40 minutes to download the Ninja Gaiden II demo. XBOX marketplace is SLOW... not a very user-friendly choice, especially for the casual gamer (Harmonix's biggest audience)
  7. Why even have a disc if it's all DLC anyway? why not just download the whole game... Most people don't go into stores to buy Xbox LiVE very much unless they're scared of credit cards...

I'm sorry, but with all of the Flaws listed above (especially the hard-drive fiasco), it just does not seem pheasible...