It would be interesting to see how many 99 dollar 360s they have sold doing this.
Again, its a good enough "deal" for some people, but if it doesnt have some awesome game(s) at lunch, I don't think people will go for it.
A large amount of the people that would fall for that are people that use their 360 mostly for netflix, hulu, etc so they would see no point to upgrade.
I have no opinion on your statement that most people that do this only want media streaming. I was thinking single mother buying Xbox for teen kids and early 20's adults personally.
One podcast I listen to they "heard" the $99 Xbox was more successful than MS had expected. IMO this is just the kind of shit consumers fall for.