Everyone is up in arms over the 479.00 Elite model that will ship on April 29TH (which is a Sunday, very strange). Some feel that Microsoft should have included HDMI in the beginning when the 360 was released (November of 2005) instead of waiting for an upgraded model. Sure, Microsoft could have included HDMI but at the time of developing the 360 in 2004 and 2005, but the cost was very high at the time and the 1.3 spec was not completed plus no HDMI receivers existed at the time with reasonable price points for the average consumer. Microsoft made the correct choice given the state of the market. If you cannot understand this, you are truly lost.

Sure, you could have used HDMI for Video to your HDTV but the Audio would have been routed to the HDTV instead of your receiver (which would have had no HDMI). The end result would have been 2 channel audio instead of 5.1 channel audio.
Coming back to HDMI Video, the quality depends greatly on the source. The Comcast DVR has horrible HDMI output but the Toshiba HD-DVD Players have excellent HDMI output resulting in a significant improvement over component video.
Will 360 HDMI deliver an improved experience over component video (which already provides excellent image quality)?
Should you really upgrade? Here are the reasons to upgrade:
1. HDMI 1080p for 360 Gaming – ONLY if you have a HDTV that is 50+ inches in size will you be able to enjoy the splendors of using 1080p (meaning the eye can tell the difference between 1080i and 100p). Even at 50 to 60 inches you need to sit at about 6 feet (not 10 to 12) from the display (your optimal viewing distance). If you sit at 10 to 12 feet you will need 70 inches of HDTV goodness. If your 1080p HDTV is under 45 inches you will need to sit somewhere between 2 to 4 feet from the display which is too close for most. Basically, if you are using a small HDTV or one without HDMI, you do not need to worry about HDMI. Component is still your friend.
2. HDMI 1080p for 360 HD-DVD Movie Watching – Same as above. Enough said.
3. HDMI Audio – The only real benefit here is TrueHD Audio for HD-DVD. With the Elite, TrueHD Audio should be supported as they already decode TrueHD tracks and then re-encode them as DTS. Using HDMI for standard 5.1 and DTS audio is ok but not really required as optical output is just fine. Therefore if you are not watching HD-DVD’s, you have no reason to care about HDMI Audio.
4. 120GB Hard Drive – The 120GB has one immediate purpose for us Video Marketplace fiends, more storage. I am sick and tired of deleting content over and over to make room for new content. Another reason is the upcoming IPTV which will require lots of storage when the feature is up and running come the end of this year. If you are buying the Elite just for the 120GB Hard Drive, “DON’T”. The 120GB Hard Drive will sell for 179.00. Spend the 300 bones on more games and or HD-DVD movies.
5. The color “BLACK” – Black has always been the “power” color but is definitely not the sole reason to upgrade. If you are upgrading just to have a Black 360, you are mad! Simply buy a mod kit, skins or vinyl wrap and some 400+ bones.
If you are upgrading for the first 4 reasons, you are complete “sane” even though “sane” means you are paying 300.00 for HDMI Output (just like ME). But, if you are upgrading simply to have the 120GB Hard Drive and or the color “Black”, you are “insane” and should seek immediate psychiatric help. Buy the separate 120GB Hard Drive and skins/mods/vinyl as I mentioned earlier.
For the rest of you, (don’t worry) be happy with the existing 360 as you are really not missing out on anything special….