Phil Spencer would have to "disown" everyone that had anything to do with the original Xbox One concept. Talk about how he's in charge now and it's going to be about games and how he's going to invest in first party studio's rather than third party money hats. Give those 1st party devs creative freedom and create unique new IPs. 
They will have to get rid of the Kinect and drop the price by at least 100 dollars (preferably 150) and take out all the multi-media features that are locked behind XBLG. 
Then hire as many old Rare guys as you can and make Banjo Kazooie 3.
		
		
	 
The first paragraph is extremely petty and never going to happen, I also don't see what you would gain from it. Ballmer, mattrick and whitten are gone mattrick being the biggest problem IMO, not sure if Marc whitten was even a problem but Phil spencer has already said he's a games man and that's what he will be focusing on as that's what Xbox is to him.
Microsoft have already opened new studios and I think they will expand again but only 1 of their new studios has actually shipped something (project spark) so they will wait a bit before doing so again. I highly doubt they will stop working with developers they don't own as they can publish some great games for the platform with other partners, gears, fable, mass effect, ryse, pgr, state of decay, Alan wake and hopefully sunset overdrive and quantum break all examples of games made with studios they didn't own when they launched (ME obviously going to ea), they won't stop that and neither do I want them too personally.
I don't disagree with the apps behind paywall bit, from the point of view of why they originally did it I can see why but it's 2014 and they need to fix it. kinect well, I can't say I use it for games but I really like the voice commands a lot, if you really don't want it that much then ms should offer a bundle without kinect.
There are at least 2 if not more of the main guys behind banjo still at rare btw.