What a naf colour and a crappy design. Also, I'm not impressed with Microsoft's attitude when it comes to it's existing customers:
(Wikipedia): "J Allard stated, 'Xbox 360 will be backward-compatible with top-selling Xbox games'. The ambiguous statement has many media outlets believing that Microsoft may pick and choose certain games. Steve Ballmer in an interview with Engadget has stated that they will concentrate on making sure the best selling titles, such as Halo and Halo 2, are compatible, and by engineering. Michael Brundage, a Microsoft software engineer, says on his site about the current challenge to develop an emulator, granting more reliable and solid compatibility."
I can't see how they're going to make Halo backwards compatible when the new controller doesn't seem to have the black and white buttons used for switching grenades and using the team communicator.
This looks like a poorly thought out marketing gimmick with very little in the way of technical innovation and rational design. Ok, so you've stuck a faster processor in the box and made it a little smaller - so what?
Typical microsoft: when a product works, release a new version at greater cost and stop supporting the older one.
To come: X-treme marketing shots of my toaster.