I knew Microsoft was in trouble a few years ago when they started testing new things on the 360. TV apps...kinect...smartglass...none of them are bad ideas but none of them are why someone buys a console.
I understand their point...95 percent of games come out for both consoles and are exactly the same no matter the specs of one console or the other...so they wanted to find a way to add to the main experience which...honestly mostly comes down to what controller you prefer. Both sides continue to sign exclusive dlc deals that make the game makers some scratch but I don't believe does much of anything in the long run.
But I knew they were in trouble because they push too hard. Bells and whistles are fine. They can be nice even. But you don't buy a bike that won't run if the bell stops working...and Microsoft always pushes too hard. As soon as they dipped a toe in the water with apps, cameras, voice control, all of it I knew they'd overreach and force it into the next gen. Because the only way to provide a different experience is to force it into the box. People, by and large, don't want to be forced with any of it. But they took those choices away.
The thing has to connect to the Internet so often so it can keep all the crap that should be a bell or whistle updated so they can provide that experience that they believe will enhance things. They can even be right and it still misses the point. It's another choice taken away.
Same with kinect. Is it cool to be able to control tv with my voice like I live in Star Trek or something? Sure. I also can use this remote like I've managed to do my whole life and its not worth a bundled 100 dollar peripheral that I, again, can't choose not to,have.
The used games thing is its own animal that should be taken out back and shot first.