upon reading that it seems that this "always on, always connected" only means, that it has a standby mode in which it can still update and maintain network connection (didn't the 360 already do the same?) and not that you need to have your console connected at all times to use it

the part that says it won't play games from disc but rather install all of them and may start playing while installing is curious though - that pretty much rules out below 500GB HDDs and indicates there might be several skus with different HDD size

So basically it installs games to the hard drive rather then play directly from them.
Meaning you either need the room to install the games or have to purchase additional hard drive space.

That's probably also why "used games will go the way of the dodo" or at least how the rumor came about.

MS needs to hurry up and start telling people what's going on. E3 can't come soon enough.

no the current 360 does turn complety off. it has a low power mode that it uses to finish downloads i believe than it turns off all the way drawing no power. that is why the current kinnect cant be used to turn it on.

What part? That consumers will have to buy larger hard drives? We saw that this gen to. For example all the digital content and DLC. Only so much can fit on our current drives, granted 500 gigs is quite sufficient for current standards. It's going to suck for people who own 100+ games (like me) yes, but I'm sure either It's a A) re-install process or B) More pricey option of buying 3+ terrabyte drives. Not sure how that's going to drive away customers.

Kinect integration was a given since the first 720 rumor. 

These pictures don't tell us anything new.

Why are people getting worked up over a rumour?

The only things that don't sound too good to me are the mandatory installs (unless they include about a 1 terabyte hard drive) and always online required (which mostly wouldn't effect me but I know plenty of people that would get screwed by something like that).

But this is a rumor so maybe not everything is correct. How legit does that document/photos look?

I find the "always connected" thing very hard to believe, not even 2011-present Nintendo would be that stupid.

Guess we will know for sure around E3. They won't talk of anything that might give them a bad rep during a reveal.

That's a pretty fertile breeding ground for DRM. We don't know one way or the other, of course, but it would certainly make DRM a lot easier to implement.

You can't play but install from Blu-ray drive and while installing you can play that game.
I really don't get it.