The Xbox 360 Elite will ship with HDMI version 1.2, as opposed to the latest version 1.3. What do you lose with such a monstrous degradation? HDMI 1.3 adds support for Dolby TrueHD and DTS-HD Master Audio streams; this can be accomplished in HDMI 1.2 if the player can decode these streams into uncompressed audio, but unfortunately neither the Xbox 360 nor HD DVD add-on support it. (For reference, the PlayStation 3 was the first device to use HDMI 1.3.)
Other differences include audio / lip sync technology, a greater transfer speed -- which would matter if you were outputting above 1080p, but that is currently the maximum resolution -- and Deep Color, which again will be more distinguishable in future resolutions.
For now, the only major disparity will be the audio. Does this affect anyone's decision to purchase the Elite?
[Via Xbox 360 Fanboy]