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DRM was the bigger problem.  Your not forced to use kinect so its really not a big deal, but with DRM, it forced you to have a stable internet conection which is something not everyone has.  Besides, Kinect is not useless.  I'm not sure that it's worth the extra 100$, but it is far from useless.  I don't use voice commands that often, but the facial recognition is awesome, never have to sign myself in again, it just knows :).  Also, the HDMI in port was a great Idea, nice not having to switch channels, and getting notifications while watching TV so I can know when my friends are on.