i personally would spend the extra $100 but it all boils down to how much content you would plan on purchasing wither it be games on demand or extra content or movies. it can add up quick
all you do is sign up for a microsoft passport if you don't have one and use bing to search the internet to earn points. these points can be redeemed for items and microsoft points happen to be some so you get free ms points for nothing can't get much better than that. here is the link...