get real
I love these "price comparisons" that PS3 fanboys always dig up:
Xbox 360 £160 + wifi £40 + 512mb memory £40 + live for one year £35 = £275
how about £189 for the elite (120gb hdd) and a cable to the router £10. total package to get online and play all the games available:£199. If you want to play online you can CHOOSE to pay for the gold account. Not everybody wants to (I paid for a gold account and spent less than 20 hours playing online in a year). You can CHOOSE to use WIFI (at least with the 360 you get the N standard, unlike the PS3). Where is the inclusive headset for the PS3? The 360 also supports USB drives. The 360 can also output 1080p (not that you would know the difference to 720p anyway unless your tv is over 40 inches). Seriously, As a games console there is no real difference between the two, except that one is cheaper and the other has a bluray player.
DVD storage is still more than enough, the problem developers have is that they can't have mandatory installs which would make their lives a lot easier. The rest is down to efficient compression of graphics and audio. If you have 25GB to play with, why would you bother compressing the files much?