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How is it not about choice? It's not very different from PC, really. If you just want to play your average Xbox/Xbox 360 game, on a standard TV, get the Core or Premium. Now say you get a brand new TV with HDMI and the works, the Elite model is coming for you. And since you're up to an HD screen, grab the HD-DVD drive. Or say your favorite game comes out on HD, get the drive then too. You don't have to get what you don't need, that's all there is to it.
Naturally sooner or later Microsoft will have the HD-DVD drive built in. However, a fraction of their consumer base needs it now, so there's no reason to raise the price of their console for EVERYONE. You said in a few years, you'll need the premium features; by then the next Xbox may well be on the way, with those features standard.
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