Joystiq is already trying to cast doubt on the accuracy of the "leaked" specifications that Engadget apparently culled from an Xbox forum; the original post has since been removed.
The point that is giving some Joystiq commenters a problem is the so-called "silver" level of Xbox subscription, which the post claims is free. Of course, while they could be bogus, I don't think this point alone justifies suspicion. Right now, if you're not already an XBL subscriber, there's basically no point to even plug in your console's ethernet cable: you won't get anything out of it, not even autoupdates. The system doesn't provide any access at all to non-subscribers, who never see what they're missing except in the recommendations of others and in advertising. It makes a lot of sense for Microsoft to allow some level of XBL access for all Xbox owners, if for no other reason than to dangle the "premium" features in front of the non-subscribers; give them some incentive to plug the Xbox into the DSL line even before they are sure they want to shell out for the fee.
The latent power that represents is quite potent: the idea in the mind of the gamer that all that stands between them and online multiplayer carnage in Halo 2 or any other competition of their choice is slapping down a bit of plastic, because they've already done the hard part, which is cabling up the Xbox itself.