They should rename the Xbox One to the Xbox 180, it would be a perfect name!
On a more serious note, I don't like this rollback. It only goes to show how the witchhunt and echo chamber on Reddit worked. Even before the reveal, Microsoft was falsely accused of trying to game Reddit and everyone flew off the handle over someone pretty much lying to be a troll. Say the word "DRM" and you get bucketloads of Reddit karma and posts pointing out the facts(forget about posts taking the opposing view or opinion) were downvoted into oblivion by the angry mob.
And then there was the bad timing on the NSA leaks, which didn't help at all. Everyone has smartphones, laptops and tablets with cameras and mics which could be watching and listening and Apple/Google were part of the leak, but it was Microsoft that was singled out for proposing a device that could turn on itself, and had numerous safeguards to configure privacy if you wanted to.
All this doesn't excuse the fact that Microsoft utterly and totally failed in communicating their message in a proper manner in E3 and handed Sony an easy victory on a silver platter. For example, they failed to highlight how it fixes the problem of scratched and lost discs and how inconvenient it is to change discs to switch between games. I know a lot of people with huge DVD collections who watch the same movie on Netflix because they can't be bothered to put in a disc into the player.
They were touting the ability to play another game while waiting for people to join another multiplayer game, now that will be inconvenient with having to switch disks.
I guess it was easy to roll this back because it was not Microsoft but publishers and game developers that were going to reap the benefits of diskless gaming because Gamestop etc. skim off the value of older games and leave publishers with not much value. Once the public failed to see the advantages and blamed Microsoft for a power grab that was not going to really benefit them all that much, it was game over.