One, we don't know the price yet. Two, if you've seen the demo of how it is intended to work, the integration isn't just compositing a universal overlay onto separate feeds with some CEC control over HDMI-connected devices/IR-blaster/network, it's that the software can act accurately on voice commands that say 'XBOX, play X-Files' and then it switches to the channel that is playing exactly that at the moment. There's no device or service that even works remotely as stupid-simple as that right now. Not saying that the market is begging for easy interaction like that, but the world was never begging for nearly anything consumer electronic-related that was popular before now. It's really the first time a console will come built-in with a consideration for what the user already likely has. Obviously, there are exclusive offerings on top of that, as well as anything else MS wants to throw in there that they haven't revealed yet or are going to offer in the future.
Those looking for just television-integration won't have need for something as expensive and large as a X1, but for people who want a new games machine to go with, it's a million miles above what what Apple, Roku, or Google offer and, at least, in the same league as PS4. The big thing with this approach is that even if you don't give a flying fuck about the television end of things and are part of the streaming-only crowd, this system should be competitively priced against PS4 and have big new next-gen games. If I were MS, I would leverage my warchest and ability to have a completely focused television/entertainment side of tech and creatives to support that side of X1 and simply bulk up the gaming side so that you could effectively address both the gamer and early adopter as well as everyone else. You only need to have the games to make the most demanding gamer happy. If MS comes at everyone with a load of excellent titles at launch, it will be every bit as compelling to the gamer as a game-focused PS4.