Xbox's new "deal"

Xbox has released a new deal for the 360 slim for around $99 but... Along w/ the deal you will be sealed into a 2-year contract. But is this really a deal? I mean add it up 2year contract, gold membership, and monthly fees you are looking at about $700 in the end....in my opinion this is a rip off...
Oh did I forget to mention that you can only get this deal at a local Microsoft store ( shocker).