Ernie_C,
You don't need both but it should be the user's choice. A confirmation of deletion is helpful to some but annoying to others. A deleted items folder gives the opportunity to recover something that was accidentally deleted or which you later realise that you need to refer back to.
My e-mail allows me to chose whether or not to confirm deletions and moves deleted items to a folder from which they can be recovered. This is standard practice in the 21st Century. These are the kinds of preferences which should be available on the 360 box and on a per user basis otherwise what use are profiles?
So far I have found very little difference between the default profile and my personal profile apart perhaps from favourite channels. There are a number of other options which should be tailorable on a profile by profile basis and, when time allows, I'll be posting my suggestions in the community forum for others to add to or to discuss.