And the fact that they completely overhauled their interface, added new features (like Netflix streaming), all while being still ahead of the pack, is extremely un-Microsoft-like. Usually I expect to see MS innovate only when they've been soundly beaten by the competition. It's a breath of fresh air.
Too bad PC gaming is a bit of a dying industry :(
This is a good thing for a number of reasons. One is that there's no need to have Windows around anymore, meaning that home users can switch to something more usable, stable, and secure. The other is that game companies will only have to test two configurations (Sony and Microsoft), instead of the thousands that they do on PC games. Less QA grunt work == more features, or faster releases.
I'll concede that FPSes suck on consoles, but considering they all have USB, there's no reason why you can't connect a keyboard and mouse to them.
Valve patched the PC versions almost immediately, and in fact have even added content to the game in subsequent updates. All of these updates just hit the 360 version days ago. MS is allergic to fast-turnaround updates, and also allergic to free content updates (it sets a bad precedent for devs who want to charge for more content).