Ok, disregarding any qualms I have with pricing, value, etc., this is the main problem I have with both the 360 Core unit and the Premium pack:
Neither are, in terms of a leap to the next generation, quality purchases. Now, before you freak out, let me explain.
The defenders in this and many other threads have provided two answers to choosing which pack to get. If you don't care much about online, DLC, BC, etc., just buy the Core pack. If you want the 'full' Xbox experience, buy the Premium pack. My problem is, both suck at their respective tasks.
The Core system is, in my opinion, a pathetic leap for a next generation console, especially in the face of its competitor's upcoming offerings. Nevermind the graphical upgrades or the improved UI, that shit is the bare minimum. In 2005 (nearly 2006), out-of-the-box I'm stuck using a freakin' wired controller, and that is just wrong. I'll also have to hang on to my old, oversized Xbox if I want to keep playing its games (or worse yet, I won't be able to try any of them if I never owned an Xbox) because the system lacks BC. I won't be able to save any of my games or go online out-of-the-box (or by using any of the universal memory sticks I already own) without buying a proprietary memory card, and I won't be able to utilize custom soundtracks unless I plug in a damn external player. The Core system pack, in my opinion, just doesn't cut it anymore for providing a suitable next gen leap.
And as for the 'full' experience Premium pack, my problem is just that. Thanks to the Core pack, there won't be any such 'full' experience. The HDD won't see the support we hoped it would, there won't be as much DLC worthy of needing an HDD as we hoped there would, and the BC offered is absolutely tripe. I'm fully expecting more than half my collection won't be compatible upon release, and compared to what Sony and Nintendo are offering, that is just unacceptable.
By offering the two packs, MS has taken the system, split it into two lesser portions, and destroyed the legitimacy and viability of either package as a suitable transition into the next generation of gaming.