Okay,
I have decided to get the 60gb. I found one for $250 new. I think that's not a bad deal. He (my fiance who is getting it for me) doesn't trust getting it off Ebay where it's much cheaper. Also, I rather the newer HDD that's more stable than the older ones in risk of Ring of Death. 
Yes I do play a lot of games, but spread out through all the consoles I have Xbox, PS2, NES, Wii, GameCube (although I don't need it anymore!), Sega, Dreamcast. I still love my PS2 games.
As for Hardcore - what I meant was I don't pay $50 to $60 for brand new game, playing every single day, using xblive (I never had one, probably will with 360, not sure), downloading all the extra stuff that I don't need/want. Maybe Arcade games, but that would be it.
So, Arcade is out because I find that it doesn't meet my needs plus it's not backward compatible! Elite is out because too expensive, $500?!, I don't have HD TV, I don't need all the extra space. So the 60gb meets in the middle.
I decided not to get the PS3 because there's a LOT of games that's available for both systems. I don't need Blu-Ray because, again, no HD TV or Plasma. There's more games I want that's only available on XBOX.
I'm not paying for this system, like I said, it's for my birthday.
I have a feeling that Playstation will upgrade their console as it's doing pretty poorly, but probably won't be available for a couple years. Then I will get that system, and hopefully it will be backward compatible from PS2 and PS3.
Can't predict the future...
