You are missing the point, why would I want to pay $500 for a box with half of its design and hardware dedicated for a use I would never take advantage of? Are they going to have a cheaper unit with different hardware just for games?
It is like buying a smart phone and never using data, Wi-Fi or 4g.
Its never going to be the same again, dedicated gaming consoles and devices are a thing of the past. I respect your opinion as a consumer, its very valid. However times are changing and changing fast.. multi purpose devices are taking center stage and in the battle for the living room the tactics have to adapt fast in order to be competitive.
You (me, us, GAF) are the vocal minority, the quickly shrinking minority who's opinions and tastes are finally starting to loose its grip. PC gamers felt the sting a few years ago with shift mostly to the console crowd.Now console gamers will feel that same sting as the industry shifts yet again, this time to a social, multi service, cloud based system that can service every kind of consumer out there. Games, applications, media consumption .. you name it, the next Xbox is going to hand deliver all of it on demand, a la cart. A subsidized entry price (ie $99 w/contract) has proven to be beyond successful with the cell phone industry and MS is going to run with it with their next gen. Consumers will probably fall right in line, this pricing model will feel right at home and not confusing at all.
MS wants an Xbox in every household and no longer under the TV of the 18-35 year old male.
You are a consumer, no longer the consumer. It will never be the same again, we are old men shaking our fists at the clouds. We are being bred out, drowned out by a younger generation of gamers/consumers who are raised with services like these. They come to expect their devices to do more. With every year more and more of them enter the market and slowly but surely us old timers, us enthusiasts will be drowned out completely and left only to remember the old days of gaming. We are turning into our fathers.
Nothing you or anyone does will change this.