No.
The features of Elite are aimed at someone using their Xbox 360 for media center functions, not at the average gamer. There will *never* be a situation where you need more than the 20gb hard drive to play games at their best.
The extra storage space is really for someone who downloads a lot of arcade games, demos, movies, and records tons of in-game footage, and wants to have it all readily accessible simultaneously on their hard drive. However, you can re-download anything, so if you delete a few demos, you can still do the same thing that Elite owners can do.
HDMI DOES NOT provide a better picture than component cables, read AVS, do serious research, get your HDTV professionally calibrated, and then compare them side-by-side and you'll find there will be no difference. Or take the word of Microsoft, who have themselves stated that there is no visual quality difference.
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