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We're not trashing the ugly look on it, we're trashing the extra cost to get an ugly case that impresses 13-year olds with the use of leetspeak on the side and, as Elixir pointed out, there are no additions to the package, namely, the new Halo game.
Why they release this before the game is out rather than making the package $500 or something (They'd still get it) and having it come with the game? Its not like they need it for publicity. Anyone who is planning on getting the game already has pre-ordered it.
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Most people who are getting the Halo 3 themed Xbox 360 are the same people who are forking out the 130 bucks required for the legendary Halo 3 edition.
Microsoft isn't making this bundle to draw in new consumers. They're making it for the hardcore Halo fans who enjoy such Halo related items and personally i think the Halo 360 looks neat. Not something i'd buy, but it isn't ugly by any means. I'm sure you're willing to waste your money on such similar worthless novelty trinkets like the Wii Zapper. Different strokes for different folks.
Want to talk ugly? Just look at all the numerous DS special editions that have been released throughout the past couple of years; namely the SE ones.
Jam it back in, in the dark.