After watching the live stream of the XBOX ONE reveal here is the highlights of the good and the bad. I'll try and make this as short as possible.

Good

Not always online

Confirmed after the conference is that it is not always online.  Only time online is needed is if installing a second hand game.  

Kinect 2.0

For the first time ever I was very Impressed about Kinect.  It was amazingly fluid and some of the things that they were able to do was both unbelivable and amazing.  having it connected with TV to make a more intelligent TV was very impressive along with the fantastic multitasking.

DVR Recording

The DVR function is much like the share feature on the PS4 except you will be able to record anything on TV instead of just gameplay.  Very impressive that they got this in the box functioning.

BluRay

I'm not going to get into this as we are all aware of why this is good.

Specs

With 8Gb of Ram and 4 Billion Transistors this thing is going to be a beast.

XBOX ONE

The console it's self along with Kinect looks good.

15 First Party Exclusive and 8 new Ip Franchises

This was the biggest news to me in the conference.  I actually had predicted that Microsoft would have the most new Ip games of the big three but I did not expect them to have 15 new games in the first year.  This E3 will be huge.

Third Party Partnerships

Once again Xbox is going to create great partnerships with timed exclusives, exclusive DLC as we see with EA Sports and Call of Duty Ghosts, as well as completely being exclusive with developers such as Remedy and Quantum Break. 

TV and Entertainment

With Kinect making intelligent TV possible with Kinect I am extremely excited to see what they can do with this.

Bad

Trailers

Even though I wasn't expecting any games until E3 I still wish I could of seen a one or two of the new Ip games.

Blocked Used Games

This was actually talked about after the conference but XBOX ONE is not always online.  There is a fee to play second hand games, though you can still buy used games.  Just like Sony they have been a little shady about the details of blocked games.

EA

While I thought EA did a good job with some of the sports footage they really seemed to just waste some time.  EA did not leave me impressed.  However they did announce exclusive content for XBOX ONE.  That may have been the only good news that came from EA.

XBOX Live isn't free

For many this isn't a big deal but to others it is.

Backwards Compatability

It was said after the conference that it does not have BC

I will update as time goes on.

+ Forza Motorsport 5 and Call of Duty: Ghosts
+ new game controller
+ 15 exclusives will be released in the first year, 8 of which will be brand new IP's

- no Halo 2 HD reveal
- Xbox Live still isn't free
- the console itself is too bulky, and doesn't have a neat design like the 360

Well that was a flawless victor. Sony might as well exit now before they lose too much money.

Thanks for reminding me of XBL.

- offline pass

The multimedia features are cool and they will most likely attract the "casual" audience. But they are focusing too much on this entertainment media thing. We gamers buy consoles for games, all the other stuff are optimal.

This doesn't mean the console will be an exclusive entertainment hub, games will be coming (they said that in the conference) but this too much focus on media and TV is unnecessary and will only be stuff that increase the price for something the majority of gamers won't use.

With good marketing and price this will probably be a huge success in America (and that's another thing, for now this looks like an American box, and most of this entertainment things won't be available in other countries), but I fear that this won't be a gaming console, this will just be another machine where you can watch Netflix only with a more fancy user interface and voice controls.  

oh boy....

Wasn't impressed at all by Microsoft's reveal. Most of the stuff they showed off for television is already done by some television's. The Kinect stuff was alright, but I don't see it being used often by most gamers. Definitely didn't show enough games and I don't recall seeing any actual gameplay to be honest. The one thing they got right was showing the console itself, I'll give them that. Other than that though, this reveal was awful.

15 1st party exclusives in the 1st year hardly says that.  This was about hardware.  E3 is about games.