For the extra $10 you get backlit buttons, rubberized grips, premium color(possibly finish) and an improved D-pad. Personally I think an extra $10 is spot on. Will I buy one? Probably not initially, but eventually. If you don't want to spend an extra $10 for it, then don't.
This is exactly how Microsoft is praying that we see it.
Remember, the 360 wireless controller costs MS about $11 dollars:
http://www.eetimes.com/showArticle.jhtml?articleID=180201706&pgno=3
and they charge $49 for it. That is one hell of a return. Now MS may add maybe $1 of new stuff and a functioning d-pad, and charge us a $10-$20 premium? On top of an already ridiculous price?
Of course, if there were any decent competition for wireless controllers, this wouldn't be as big of an issue. Microsoft doesn't have to worry about that, though, because they're withholding the wireless protocol from third party peripheral manufacturers:
http://www.gamepro.com/news.cfm?article_id=84808
IOW I really don't think there's any kind of operational justification for the 20$ asking price.
I agree with this. You are getting much less with a download than you get by buying a physical copy. Also, the 20 GB hard drive is barely enough for a handfull of game demos, let alone full-length, DVD quality movies. Let's assume that you can fit 10 movies on the $100 20GB hard drive. That's "$10 worth" of HDD space per movie, on top of the cost of the download itself. $20/download doesn't sound so reasonable anymore.
I'm sure MS will come out with a larger hard drive soon. Unfortunately, you know they will charge 5x what it's worth, just like they do with every other 360 peripheral.
As a 360 owner it pains me to say this, but I don't like the direction MS is going. They have complete control over the 360 hardware and software, and are using this control as a way to charge us an insane amount for everything.