What spec. is the arcade? It looks from the image as though it has no HDD...As far as I know, this is the bottom spec. machine, then comes one with an 80gb hdd, then the Elite with the 160gb hdd.
On the face of it, I don't think it's a good deal at all. It's the old spec machine, without a hard drive.
My Elite with 2 wireless controllers and Resident Evil 5 (Plus some other freebies cost me £150.00 from Tesco's, but that deal seems to be over now.
Some other ideas:
Sorry, should have said 120gb hdd :))
I know it's more money, and I may be wrong about the arcade version as I am new to consoles...But I still think you can do better.