Another advantage to these enclosed systems is you don't have to have your barrel next to the house under a the rain spouts. As long as your diverter is higher than your barrel, you can run your hose underground to where ever you want to place your barrel placed.
If you have your own tools you may only need the less expensive Basic Rain Diverter Kit
Many rain barrels are not fully enclosed. They filter the debris with screens, usually built into the barrel where the water pours in and are placed under modified water spouts to catch the water. Here is some great info on how to construct one of these barrels. http://www.watershedactivities.com/projects/spring/rainbarl.html
Rain barrels don't have to be an eye sore in your yard. Here is some great rain barrel art to get you inspired:

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