I'm happy that apps like Netflix are finally out from behind the paywall. That was always ridiculous.
I'm not so happy about Microsoft dropping the Kinect so quickly. Personally I wanted to see what developers could do with the hardware this generation. Now I can't imagine many studios won't be interested, if they ever were.
Also, can anyone verify whether Games with Gold is transforming into a PS+ type service? Seems to be conflicting reports.