See, this whole "he could have given it to charity!" argument is ridiculous. ANYTHING you buy aside from food, clothing, and housing, could be given to charity. Everything else is a luxury.
If you bought a 360, YOU could have donated that money to charity and done something better with it.
"But wait!" you say, "He took money and just destroyed something! There was no gain! At least I'd be enjoying my 360!" Irrelevant. Number one, people donated because the concept entertained them. Smashmyxbox.com provided a service. They are providing an entertaining video for people to watch. It took some money to produce that entertainment. Second, buying that Xbox has helped to secure profits for Microsoft and also to ensure job creation in the future.
So in a roundabout way, Smashmyxbox hired a man and fed his family. You should feel guilty for trashing them.