@Machiavellian
I wasn t using this MS guy as spokesperson I was merely trying to answer your question:
"I am more interested in see if this rumor is true what does MS get out of it"
So I had to operate under the same assumption "if this rumor is true"
Also you said:
"What I would like for people to do is to separate the two issues. The one that I believe people are concerned about is that the console must be connected to the internet in order for you to use the console. These are two very different issues and only the later where I can see that as being bad."
You correctly distinguished those two always on definitions but the uproar is only caused by people being concerned about not being able to use their console without online connection. due to Oarths comments, and rightfully so. The other type of always on is not a concern to anyone.
And as I said before the possibilities to capitalize on an always connected Xbox are endless. Even if they sell 25 Million less due to always on. Customer lock down and selling personalized TV Ads to the Cable provider could easily make up for the difference. Kinect could just choose ads based on general information about number of persons (children) without even sending specific data somewhere this wouldn't even break any laws but could be marketed for absurd amounts of money and its only possible if the console is always on.
"Your point on if the subscription runs out on games you purchase and you cannot play them anymore unless you renew will not happen because the market today does not support such a thing and consumers would not as well."
Assumption. Maybe MS doesn't see it that way see Gold. Seems like the Market did support paying for a traditionally free feature. Why won't ghe market support an always on console which requires a subscription to work ? Also MS is taking probably babysteps maybe:
Last Gen: Paying for Online
This coming gen: Always on
Next gen: Xbox Live subscription only
"Here is what a lot of people are not thinking. Unless everybody does it, then there is no advantage for MS to do it. If Sony could advertise that their system does not inconvience the customer with online only then that would be a clear advantage to Sony and MS will not give something like that up unless they gain someting significant."
You mean like paying for online ? And as I said MS can gain alot through always on. Even if they lose some marketshare to Sony. You think MS is satisfied with the puny consol market ? Sony and MS always wanted full control over the formats and media consumption of the people using it. Always on is the next logical step. Sony is just more gentle about it (if MS follows through).
So yes it makes sense for MS to do that, its not unlikely. Even if Sony doesn't. Its not suicide if you have a plan.