MS have done well here, although I do find it a little hypocritical that the 360 fanboys (I'm not accusing anyone on here btw) are giving it the whole 'in your face Sony' about the HDD installation, when previously they've gone to great lengths pointing out how uncouth it is to have to install a game before playing it.
I may end up grabbing a 360 once this is all implemented, assuming the price comes down a tad further.
MS should let people do upgrades with normal HDDs though, that would be a crucial gesture, it's one of the few things Sony got right from the beginning.