I think the big picture stuff of it basically being better then what is on the market now is reasonable seeing as it is about a year or two out, making it four years out when presented.
I thought the idea that there would be a 'media centre' version and a 'gaming' version was interesting.
As to the price, I think the way things are going is that the console is the bait and the xbox live subscription is the hook where they make the money. Maybe they think this will have gone further by 2014 or so. I think this plays into the idea that most people now use the xbox for things other than games they bought on disc at a shop.