You are right for the hard drive size. When I view the promo page and select Ontario as my province, it says the 4GB is valued at $199, but when I clear cookies and select BC as my province, it says 250GB is valued at $299. Not fair - BC already has better mountains and beaches than us, but now they get a better Xbox deal too!I read that in BC, Alberta and Quebec you will get the 250 GB model (valued at $300), presumably because you can also use it as a STB with their IPTV service.
I noticed that telusmobility says "only at Telus". I wouldn't be surprised if Telus is picking up at least part of the price on the Xbox, since they also offer a free 250 GB Xbox with a 2 year internet contract, which has no connection to Microsoft.