So a bit more time to think about it, more time to write my thoughts, and the excellent Stumpakow post - and I'm still not sure what to think.
I'll say this - it's better than I expected (or was rumoured I guess). That is, the ability to lend a game, share with people etc. are all, subject to some further clarification, good policies if you can accept that Microsoft have decided they want to build a digital future console.
If you can't reconcile that - then I guess it's a case of 'well, choose one of the many other alternatives'. I question whether Microsoft know what they're stepping into here and limitations/expecations of a digital platform. That is, they're limiting their potential market with the 24 hour connection rule. I'll happily eat crow on that - I thought it was ridiculous that they would consider that - and here we are, confirmed albeit less severe than was initially rumoured (always on, 3 minutes blah). I think they're underestimating the number of people who:
A) Don't have a consistent/reliable broadband connection
B) Don't have access to the Internet at all
C) Have a broadband connection but CBF connecting it - simply wanting to place a disk in the tray of an offline console and play. I assume this is a particularly troublesome segment - consisting of many teenagers at home etc.
The expectations of a digital platform (so kindly set-up with Steam) are a great service, consistent reliability (that is, minimal login/server issues), and competitive pricing. I guess time will tell on that - again, I'm not sure Microsoft know what they're in for and the backlash that will come if they can't nail it.
As with all things in this Industry - it comes down to games. I know there will be people who will think it's abhorrent to even consider purchasing the console or supporting these policies - and I think if you feel that strongly about it, then absolutely you're doing the right thing by being vocal and avoiding the console. Personally, as someone who has access to a reliable connection and is only really interested in:
A) Playing games I want
B) My wife playing the games she wants (often the ones I am playing)
C) Sharing games with a few friends (only one consistently)
None of the policies Microsoft have announced have affected me all that much - despite being a questionable move against consumers at best. For me, the onus is on MS to show that they can back this move up with a great service, a great line up - and that they've learned something from Steam. In the meantime my eyes are firmly set on PS4 as my next console.