A pilot program, you say? Apparently the program's a "pilot" based on its extremely limited availability – the $99 Xbox 360 is only offered in "the 16 Microsoft Stores in the US." As for that two-year Xbox Live commitment, that won't include any of the rumored "various types of streaming content," as it's identical to a normal Xbox Live Gold subscription.
According to MS, the program, "aligns with our ongoing commitment to test new products and offers to understand how to best serve our customers." According to us, this is all very weird.