[quote name='louiedog']It's not just quieter (and it is much, much quieter), but for most games there's a performance bonus. At the very least you're looking at shorter load times for a lot of games. I haven't played a single game without installing it in at least two years with the exception of a disc that was scratched and would fail the install at about 97%. I couldn't believe how loud it was after getting so used to installed games.
You also reduce wear and tear on your drive. I have an original Xbox with a drive that died. When it started to go I modded it so I could run my games off the hard drive. When the 360 came out my roommate got one. Just after the warranty expired the drive started failing. Luckily it was hit with the RROD before it completely died and was replaced for free. Optical drives are one of the most likely places for a computer (or console) to fail because of the moving parts. I try to use mine as little as possible.
I really recommend not getting this system. The old systems are louder (even when games are installed) and more prone to failure. The hard drive is way too small. I probably have a 100 GB of Arcade Games alone. Combined with retail games that I install, demos, etc. it goes quickly. I realize that's not typical, but even a friend of mine who only plays 4 or 5 games a year was struggling with space on his 20 GB launch console back in 2008. I'm guessing we'll see a price drop on the system at E3 and you'll be able to pick up a used or refurb S model for $100 soon after. Then, add your own drive.[/QUOTE]
I second this. ^ Also, I totally spaced on demos. A decent chunk of my 250 GB is saved for demos (silly as that sounds, I like downloading my demos at once instead of downloading/playing them one at a time).
Also, if you have a 4GB or even a 20GB, good luck joining/playing betas. I remember the Gears 3 beta was pretty close to 1 GB in itself.
GotY editions also don't go well with models without a big enough HD.