Transferable content from Rock Band 1 to 2

So basically they anounced that you'll be able to "transfer" 55 songs from Rock Band 1 to your brand new copy of Rock Band 2 via you're 360's HDD for the low price of 500 xbox points. It was posted on IGN today or maybe yesterday. Anyway.

A few questions.

Do you actually need to own the first Rock Band to do this?
Will your scores be transfered over to Rock Band 2?
and..

Does this mean that Rock Band is now essentially only worth $5?
If you can get all of the content from Rock Band 1 on Rock Band 2, why would you need to own Rock Band 1?
From: a concerned Rock Band owner. Thanks to anyone with info.