Would someone who already has an Xbox Live Gold account need to pay the subscription fee? If not, I'll buy the Xbox, hack my old one and keep it offline, use this cheap-o one for online games like Halo, BF and Forza.
You do need to pay the fee but the fee also covers Xbox Live Gold. The fee is to equate for the price of the system, not just Xbox Live. (seeing as a similar Xbox 360 + Kinect bundle is roughly three times as much as this without the fee included).