Personally I wouldnt buy that option as you would be extremely limited for memory.
you do not have to play on xbox live but by hooking your 360 upto t'internet you will be able to download arcade games,demos,game/movie trailers etc etc none of which will fit on anything other than the premiums hdd.
You could always wait for the 360 Elite to arrive on British shores with its 120Gb hard drive and added HDMI port and looks a lot better in black! Controllers and all.