Wow. Big rumour this one.
While the inability to purchase pre-owned games doesn't bother me, the inability to flush my library every now and again with an eBay scourge, does. That's more a practical issue.
The always online thing is more of a principle issue for me. While in reality, my console will probably always be connected to the internet anyway, I don't like the fact that they insist that I have to have it in that state to access the core functionality.
I find it hard to believe that this is a unilateral move on MS's part, due to the wider implications for both the consumer and the retail sector. However, if indeed this is being driven by 3rd party publishers, and MS has gone this route alone, then I'd expect to see more exclusive content find its way to the Xbox, ahead of the Orbis. Things like timed exclusives, DLC, maybe even full exclusivity in some cases.
At the end of the day though, this is all based on a simple rumour which may or may not be rooted in truth and if it is, then it is may not be the whole story. Will just have to wait and see.