Yes that is correct, if your internet goes down you cannot watch recorded programs on the 360. It is one of the many ways it is a step down from the V6.
Some of the missing features are as follows; Wishlists (where you can set the box to record programs on certain subjects or featuring certain people), undelete, series link+, series link manager, suggestions, setting of series links for programs not in the current TV guide, ethernet control, keyboard support via USB, switching between tuners with constant buffering, skip-back on fast-forward, quickplay, default recording options, cancelling individual recordings from a series link, multi-channel series links, radio channels allowing recording of radio, separation of recordings between boxes, watching recordings when internet is not available and probably a few others I've forgotten.
Personally, I have no intention of switching until it becomes compulsory, though will likely have left VM before that happens anyway.
Edit - Also, I assume it is a remote that VM are sending you, as that is the normal way of upgrading, the box itself is updated over the internet. Though if VM have sent the remote I believe the box will forcibly update itself after about 5 days (deleting your recordings and series links) so you may be stuck with the 360 now, unless you are able to get VM to cancel the upgrade.
