It just seems like every time I say that, even around friends, they go off on my like i'm insane or something. But you're right. I re-watched the 360 premier from MTV a long while back. Man that was horrible, music acts, celebrities, it was just lame all around. They also called it an "entertainment" box on many occasions so that just reiterates that it was their goal all along.
Microsoft trojan horse'd the 360 into living rooms though games, and now turned it into a general "entertainment box". They're looking to do it again with the 720 but this time the PS4 is gonna put up much more of a fight as a gaming console to cripple MS's strategy. If Microsoft can't get a foothold they might wind up in the same position as Sony this gen.