Hey if they push a turkey they will fail.
The other problem is that it's not backwards compatible with many XBox 360 games...so you still need your old Xbox 360 to play them. Eventually the RROD will take the 360 to where old consoles go and then you're stuck with unplayable games or you buy a new 360 in addition to the new console.
I get what they're trying to do, but I'm skeptical about where this will go. They are attempting to make a central entertainment unit that does many things, but it's supposed to be a gaming console. If they dilute the gaming experience with "policy", it will be a lavish Thanksgiving indeed and MS will provide the turkey.