I think Microsoft was just too far ahead of the curve, but if you listened to the major publisher's conferences... EA and Ubi... the majority of their FIRST next-gen games will require an internet connections to access all the newer, cooler features in the game. In a few years, you're just going to need a connection to the internet period.
Unfortunately, Microsoft appeased the publishers, but was thinking just a bit too far ahead for the majority of current consumers. I don't really mind the stuff... I just wish GameFly would work on the X1. Then I'd really be sold. They've shown that they've got the games.
It will suck for Sony when these publishers finally just say, "It's necessary now." The Microsoft community will have been ready for years... the Sony community will be, for lack of a better word, blindsided.