BorgMind
BorgMind
BorgMind

I don't think Microsoft has done anything wrong in terms of the way they treat their customers. If you take the number of Xbox Live gold subscribers into consideration, you could also make the assumption that people love the company. To say their business model is punishing customers is going a bit far, if you find

No one out there pays for Xbox Live if the only thing they do is watch Netflix. If they do, then they're stupid for doing so. You're paying for Xbox Live for the gaming features, the scheduled updates, maintenance etc... Netflix on Xbox Live is an added benefit. I happen to own a PS3 and Xbox 360 and almost 100%

The experience is actually a lot less convoluted as you describe. I actually use my current Kinect pretty often and not so much for playing games but for services such as Netflix and HBO Go. It works well for playing and pausing. If it's as improved as shown, it will be the best control for your television.