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I'm really excited.  Sony has shown this time around it learned its lesson with the PS3 reveal, and they're really listening to gamers.  Sure, I was hoping for complete Sony dominance with Nintendo flexing its first party muscles as well, but I'm glad Microsoft pulled the DRM back.  It's good for gaming, and it keeps the pressure on Sony to continue to deliver.

That being said, Microsoft hasn't "fixed" anything, they've just stopped pouring gasoline on the fire.  They lost a lot of trust from the gaming community, and still seem out of touch.  Rather than ask, listen, and deliver what gamers wanted, they decided what was best for them and tried to push it on them.  That's not something you can just reverse.