Here is what I would consider a compelling experience:
I don't have to change inputs on my TV, all my shows are brought to me through one interface (like Xbox one is touting). But, it would need to interface to my DVR and see all my shows that are recorded, and let me set recordings. I would also want it to hook up to my NAS to stream movies and shows from my personal collection.
It then takes all of that - live TV, recorded TV, on demand, NAS, and presents it to me in an intelligent way so I don't need to spend time navigating to shows, they are right there.
MS is doing a lot right with their offering, but personally it needs at minimum to handle DVRs well, and preferably home network content too. Even if it is only a small set of DVRs, if the experience is good enough I'd switch suppliers