So my first console was an NES. After that I moved directly to SNES and never owned a Genesis. I've experienced its games here and there in snippets, but in general I am a Genesis novice. And I wouldn't mind taking a little history lesson into the console I missed. I really haven't owned any Sega systems besides Game Gear and Dreamcast.
 
So my question is, what is the best way to experience the Genesis? Do I: 
 
1) Buy this collection for $20 and call it a day? 
 
2) Be crazy and buy an actual Genesis at the local game shop and buy whatever random games are available to slam in and try? This is also the more expensive option. How much more expensive? I'm not sure, but I reckon quite a bit more than $20. I'm sure the system alone will probably be $30-$50. 
 
3) Stay home and playing whatever else I have. This would be the "you didn't really miss out on too much besides the classics which you've probably already played snippets of in the past."

Sonic's Ultimate Genesis Collection is pretty awesome. Especially for twenty bucks. Even if you only play most of the games for less than an hour each it would still be worth revisiting a good piece of video game history.

• Get a Genesis.
• Get 2 controllers.
• Get "Zombies Ate My Neighbors".
• Get a friend.
• Play.

Well theres option one. 
 
Plus dozen of other collections. 
 
Plus what gets released on XBLA, PSN, and Virtual Console.

Virtual Console is a great way to play any that aren't on the collection, but the games are $5-$8 each.  Zombies Ate My Neighbors is on there but it's the SNES version. 
 
I would definitely consider getting an actual Genesis after buying the $20 collection.  $20 isn't much, and there are some games you are only going to be able to play on the actual Genesis.  Plus cartridges are awesome.

I grabbed this collection the other day, and oh, my word, the nostalgia it brought is most awesome.
 
Great collection... makes me want to go and buy a Mega Drive/Genesis!

I'd go for a Genesis if you're serious about it. Compilations, emulations, etc. rarely if ever compare to the original. Also the d-pads on modern controllers are poorly suited to many of the games.

Make sure to pick up Gunstar Heroes on XBLA/PSN if you get the collection.

Grab the collection most old Genesis controllers are in disrepair, with after market controllers being squishy and poorly constructed,