Responding to consumer feedback isn't a bad thing per se, but creating such anti-consumer policies in the first place makes one reluctant to spend a significant amount of money when a competitor has a more impressive product for less money.
Apart from second-hand games. Or local play. Or slow connections. Or ....
Honestly, the ability to share a game with family & friends without ever having to exchange physical media would've been a killer feature.
Also, discounting exclusives is pretty huge. You also need to discount indie games, since Microsoft has proven they don't give a shit.
Disc technology is far from dead. Tell me this again when you have people biting at the bit to download 50GB worth of data (blu-ray DL size disk). Microsoft wasn't leading the next generation of anything... both physical media and online media should be able to exist without a persistent internet connection.
If you want to buy a console from the guys who, when asked about an offline offering of the One said "we have that, it's called a 360," then go for it. Super consumer friendly, no doubt.