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I understand people's concerns regarding the always online (as long as it's wifi I wouldn't care) but I'm waiting for the official reveal before commenting on how smart/stupid the idea is - if it's the case at all.

I have heard rumour MS is working with cable companies to have them subsidize the cost of the 720. IE: Sign up for two years of _______ internet service and get a 720 for $99!! In this particular case, it's to the internet supplier's interest for the 720 to require an online connection. So it's possible it may only be required on 720s sold/given in this manner but not ones you pay full price for.

But we simply don't know at the point.