No, the 4Gb Xbox 360 sucks since you cant use all of the features. If you want to download content you're very limited in how much you get. Some games wont let you play multiplayer modes (Co-op in Reach is a good example) and you cant even play full games that require a large amount of data installed like Forza 3. The 4Gb Xbox 360 is designed for casual gamers who wont be using the system much (Kinect games).
The PS3 has no limitations because they all have hard drives.
demonic_85
Options > Limitations
As in on PS3 you have to install games, on 360 with games like the Forza 3 (of which there are few) you get the option to install.
It takes longer for my PS3 to install games than my PC... Kinda annoying.
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