IMHO, You'll be doing great in getting the Elite, Honestly I don't have any passion for any of those two systems (PS3-XBOX360) even though they are great systems both have flaws, even the Elite could fail because overheating or scratch discs, but hey Microsoft now have a 3 year warranty so go for it and don't let the sales man rip your money off with an extended warranty.
I was really thinking on getting an Elite too, but I think is still to expensive, So I rather got a PS3, which so far haven't heard any issues besides is the best bang for your hard earned buck, you think I'm crazy? well think again, $449 Elite + $99 Wireless + $169 HD DVD + 19 play&charge = $736
$499 ps3 80GB, everything included! blu-ray, wireless, Oh! and you don't need to buy batteries for your sixaxis!
Indeed Xbox360 has many good games, and exclusive ones! besides I think you already have games from your old premium, and you have one more advantage with the 360, 90% of the games are 1080p and PS3 games are not, even Assasins Creed is only 1080i, that's why I hate sony's babies, they always have fancy stuff and they always mess it up with something, oh well, anyway I was about to buy a blu-ray so I bought the PS3 and got a free HD gaming console, besides I already got my 5 free blu-ray on the mail, I guess is a good deal to get a ps3.
Anyways, like I sayd, I'm neutral with both systems, I just want to point up what I think about them, you like the 360? get it! it has the best games!
You wanna get the best deal? you buying a blu-ray player anyways? get the PS3! oh! forgot to mention! online gaming for PS3 is free!