What I'm getting at is that the bolded will likely cause a lot of problems in the industry. We saw how many developers went under during the HD transition, and now if every game has to target so many power levels, that can only cause more developers to drop out.
What KingSnake is getting at is that if you are forcing developers to target many different power levels, especially if some levels are very far away from others, then the work/time/budget of these games will go way up, causing a lot of problems for developers. If, on the other hand, MS says developers can release a game just on Scorpio, it will likely be a much better looking and playing game, and will not cause massive headaches during development.