I don't need HDMI because my TV supports 1080i, and if I want surround sound, I can't USE HDMI.
The 120 GB hard drive is a BIT much.
I have 4 demos on mine right now and I still have 10 GB left.
People say I want to hold Music blah blah blah. That is what they make the Zune and the Zune Software for. If you want to tkae your music with you, get teh zune and plug it into the 360. If you don't need an MP3 player, just get the software and stream it over your network like I do.
I will stick with my Version 1 until it dies or I want a second.