The larger drives are for all the new apps that are comming.
With the elite its better to install the games to the HD, much like a PC. Then when you play them, the disc only spins up once, to check its in the drive, and thats it. So no more hover craft sitting in the corner, also if it was one of the elites in the light grey box ( should have been ) rather than the old dark box, its running the new Jasper chipset, which in theory means no more red ring.
We havent had a single new one back yet, so its loking good at last.