It's controversial what Microsoft have done, like the time they enforced Broadband for Xbox Live in 2002 and when they pushed HD for this generation in 2005. Now they're doing something else and getting grief again. People are predictable.
I can understand why people are upset, but it's ultimately a sound strategy which puts the power back in the hands of the publishers and not in the retailers, and ultimately that's a positive for the games industry!
It might not get off to a great start and the prices will be dear to start off with, but it's to be expected. I feel 18-24 months down the line people will see what the intention was and actually start to see it was a future driven move.
Sony have played it very well, they're living off the controversy and pushing it to drive sales in pre-orders, and that's good, but it's a long generation and they've not really changed anything that we've had for the last decade and people are always saying this is the digital age...
Bundling Kinect is expensive, but now 100% of that target audience own one and the technology in it is actually
a lot better now , I'm excited for it! There's talk of some interesting features and interactions, such as making a noise at night attracting the attention of Zombies in Dead Rising 3 etc. Whether this comes to fruition or not, we don't know, but the potential *is* there, and that's a good thing.