A lot of people seem to be perplexed that Microsoft "can be this stupid", but I really don't think they're being that stupid. I think they have a pretty grand plan in the works here.

Used games ban: Not surprising that consumers are sharpening pitchforks over this, but I think their goal here is possibly to reduce the price of new games to the consumer while securing more of the profit for themselves. With an open used games market, you actually pay more upfront to reduce the risk publishers and developers face when people choose to buy second-hand games (leaving no profit for either). It would also help lessen the big retailers position in the market, so perhaps we don't need to have 5 different pre-order exclusives from five different joints anymore. Basically, more power to the consumer, publisher, and developer, in time. Additionally this scheme further supports all-digital distribution of games, which, hopefully, is the future. No, you don't NEED those plastic boxes in your living room, no matter how bad your collector syndrome is.

Always-on: I bet you can configure what to have turned on and not, such as the Kinect and internet connectivity. It will also be possible to turn the console entirely off, like off off. If they didn't, they couldn't have sold it in parts of EU (like Norway), that requires all electronic equipment to not have vampire loads. That would obviously power down the Kinect as well (so you can masturbate in peace). So it's not AS big of an issue as it's being made out to be. Just pull the plug when you want to like any other equipment.

Online requirement: Yeah this one is just dumb no matter which way you spin it. I can understand that they're doing an analysis around the fact that many people have relatively stable internet connections today, and even more people will have in the future. So, not that many consumers will be affected by a phone home mechanic as long as they have at least a flicker of internet every day, which most people admittedly do. They're riding the bet that this will be an issue that basically decreases over time (remember, they're planning for the next 10 years here) as technology and infrastructure advances. Added bonus for them is that it ties in heavily with their desire to reduce retailer power, and publishers really love them some dee errr emm. However, selling it solely as an online requirement pretty much makes the interweb twitterbook of today degenerate into a raging, seething anti-DRM, fuck Microsoft and fuck EA, mass.

TV stuff: They want to take over your living room. It should have a TV and a XbOne in it. That's it. I don't think they really expect to succeed but at least they're trying to get that ball rolling.

Seriously, Microsoft are the alien overlords of long-term business strategies. Think about the changes they made to Windows 10 years ago that everybody just expects today, but didn't like then, such as the complete severing from the underlying DOS environment.

So no, I don't think Microsoft are being exceptionally dumb. They could stand to hire a couple decent PR guys, though. The way they've sold this is atrocious.

Cue the downvotes!