MS just shot themselves in the foot. The Elite doesn't match the PS3 in terms of standard features - they'd have to make all the optional extras free. And it still won't have a BD player.
I just cannot help wondering how long their prices were inflated?
In the meantime I got a really decent deal on Wii and I am very happy with it. It will never replace my PC gaming but its gr8 fun for friends and my little one absolutely loves it!