maybe I'm alone in thinking this, but this sounds bloody amazing. I really do hope this is what they have planned.
Of course. People thinking MS has no idea what they're doing and have just completely dropped the ball aren't being reasonable.
By most rumors Kinect is going to be in every box. They've extolled the virtues of Kinect as the remote. How does this not paint a very clear picture where the Xbox 720 effectively turns your big screen TV into the same kind of page based interface we see on iOS and Android devices? The only difference is that instead of providing it to you on a small format with games like Fruit Ninja and Angry Birds as the top of the segment they'll provide something much closer to Epic's Dark Knight video with 1080p blu-ray, 5.1 or better sound, etc..
And instead of using your finger to swipe back and forth a snap of the wrist, recognized by Kinect, flips "pages" and a voice command can execute most apps without even returning to the home menu.
In the youtube video while playing Halo 5 example I gave, imagine being able to just say: "Xbox, youtube search X video in background" and have the system do that for you without disrupting your game. Then when the round ends you can gesture to bring up the youtube plane that it opened per your previous request, or you can voice command it to bring up youtube, just waiting for you to say "Play" to run the video.
The potential here is the pinnacle of media convergence. The question is if the market is ready for it, and if the power gap Sony has over them will be too much for the average consumer to ignore.