The rumored Xbox 360 price drop is actually more of a bait and switch. It appears the 20GB Xbox 360 conifiguration is officlally $300 now - but only while supplies last. The also rumored 60GB model is waiting in the wings to replace it at the $350 price point, but now until August. So if you want a cheap Xbox 360 with hard drive, get it soon as supplies are limited. And if you'd rather pay the extra $50 for an extra 40 gigs of storage, you'll just have to wait...
I was excited about the price drop until I heard the rumor of the 60GB version. I figured the prices would go back up, which they have.
I agree with Bill Harris over at Dubious Quality who says that people are going to feel like this is a price increase when the 60GB version comes out.