Lately, the best deals have been on the 120GB models. I've seen them dip to $1.40/GB on numerous occasions, while the 60GB models are usually $1.75-$2.00/GB (as are the 250GB ones). Since you should use only 75% of the capacity of an SSD to allow TRIM (Windows 7's wear-leveling trick) to do its job, I think that you'd be better off in the long run if you went with a 120. Bigger SSDs like a 120 also have the added benefit of higher performance (sometimes much higher) because the data is evenly distributed amongst a higher number of chips. These chips then work together to provide higher throughput, much like a RAID array does, so the more the better.
As for games, if near-instantaneous load times sound good to you, you'll definitely want to install them on the SSD, but even with 65-70GB to work with (.75*120GB-20 to 25GB for Windows) you're going to run out of space pretty fast. I've managed to think of a workaround, however:
Originally Posted by Me
I thought this third one up myself, though someone else has probably already thought of it and I just haven't read about it. Games take up a lot of space, and, if you're like me, you've got a lot of games. My solution is simple. You can install them all and then move the installation folders over to the spindle drive, keeping only the folders of the games that you're presently playing on the SSD and switching them out when you need to. It's not a perfect solution, but at least you won't have to keep uninstalling/reinstalling your games.
Since the generation 3 drives are starting to be released, there's a decent chance that prices will drop on the generation 2 drives, and that's when I'll most likely buy one.