That comment looks like it came straight from the Microsoft PR handbook.
A true game developer, especially an Indie one, loves their art and the majority do not want to release bad work.
Steam offers the opposite to what Live Arcade does and for the most part is much loved by the community for that. Xbox Live/Live Arcade has MAJOR hate within its community so such steps are not working across the board.
MANY MANY MANY games on Live Aracde/Xbox Live have bugs which proves your corporate tripe to be nothing more than a greedy money making exercise which is counter productive.
There is nothing wrong allowing a developer to fix their game free of charge.
Trying to beat them with a "Hey, get this right second time round or we will bend you over" stick is not right.
Having worked as a compliance tester for the Xbox in the past, I'm not sure I agree.
£40k or even £10k is a lot of money for an indie game (and AAA title even) and I'm not justifying it, but it represents several days with a large number of testers, and when a game fails compliance and has to get bounced back and forth it can take a lot of test time. And to be fair on MS... their compliance rules are well written out and made available to devs, yet we had some games bounced back half a dozen times because of devs not being bothered to do it properly in one go.
That said.. I'm surprised it's that much money though...
They obvously do not do a good job as if they did, games would not be certified with "ground breaking" bugs.
The compliance testing that Microsoft do isn't for game bugs, though they do get raised, it's still down to the developer to fix them or not.
Compliance testing is to ensure that the game meets the platform requirements and the rules that Microsoft layout for games. It's pretty dry stuff (informing the user not to turn the console off when saving data, appropriate messages and terminology are used when referring to console features and functionality, system functions are being used correctly and only correct data is accessed and transferred).
Compliance has to be done for every release of a game from the ground up usually. It's regression testing to ensure that the patch that's supposed to fix things hasn't caused the game to break compliance.
Note: I'm not saying that the guys behind Fez did a poor job at all, it looks
amazing. I'm saying that calling MS money grabbing for doing it isn't really right.. I don't think Steam enforce any kind of compliance rules apart from Steamworks games, so there's no work to do. It comes with the console territory, and you can't expect people to work for free so that a developer can pump out dozens of patches.