I just don't buy it. I understand that internet access is critical for Xbox Live and the tons of media functions they want to include with the new Xbox, but why would they also alienate the millions of people out there who buy consoles and do not have internet access at all, or have only poor internet quality/speeds.
I still no reason why MS would ever make this a requirement and not just an option. If they don't have internet, obviously parts of the new Xbox wouldn't work, but why on earth would they block the starting of games/apps!!!
I will still be buying a new Xbox even if it does have this requirement, because I have a very fast and reliable internet connection and I like Microsofts games/products/LIVE. But If this IS true and lasts longer than a few months before they get major backlash from gamers and change their firmware, I will most likely buy a PS4 and play a lot on there as well. Simply because a lot of my friends will likely switch over since I do have quite a few friends who live in the country/rural areas and have less than great internet.
And again, this could be another simple rumour taken out of context and blown out of proportion. Perhaps MS is adding this option as a DRM feature and will again leave it up to the publishers/game developers to decide if they want to use it on a per game basis. So if EA is evil and wants to use Always Online option, they could. Where as MS first party games might not require Always Online to work. You never know.