The TV function is somewhat innovative, although I thought it was HDMI pass through only. This was a buzz kill for me to a certain degree...
I also get the attempts to make digital contents not FULLY worthless in terms of trade/resell. It's not necessarily a bad thing, but when your competition still offers fully re-sellable discs its becomes challenging. Microsoft will do their best to buy 3rd party exclusive DLC, timed exclusives, etc.
But PS4 seems to have a lot of momentum from people on the internet. It has the lower price for people NOT viewing it on the internet. So I'm not sure how you could consider Microsoft's position a good one right now.
That being said I think Microsoft is in for the long haul. Just like with Windows phone they will not give up. They keep trying to find cracks in the armor in every market they serve (for example, low light picture quality, etc.). They really are trying to take over anything in your life that involves a [lcd] screen. Phones, tablets, PC, and now TV console. If there is one company ambitious [and rich] enough to do it, it's probably Microsoft.
