I agree with the concept of things being "always on" as a good thing. I too want all my devices to be "always online." The thing I have a problem with is making the always on a requirement for the actual function of the device because then if the connection is interrupted I can't use my device AT ALL. Setting the Xbox to be OPTIMALLY functional when always connected is cool, but making it a big black brick when my internet goes out is just dumb. If you are Microsoft, listen to me. I WANT to be able to use my Xbox ALL THE TIME. I love playing Fallout and the various Elder Scrolls games and just puttering around in Keflings or Bejeweled is nice especially if the 'Net goes down and I can't play Halo or watch Netflix! The key is I spend A LOT of time using my Xbox right now. Bricking it when you don't have an Internet connection might give me *gasp* ideas about using my Xbox less. Is that something you REALLY want if you trying to make the Xbox the center of the living room experience?
Really try lisening to us on this MS. I've been a supporter of Xbox, Windows, Surface, etc. for years now. I think you guys are generally moving in awesome directions, but this "always on" is just a bad decision because you are (and this is the important part) MAKING DECISIONS FOR THE CUSTOMER. And customers in general don't like decisions being made for them. Give us choice.