I think some of it has to do with their inability to admit wrong doing.
The video which accompanies the decision is a bit like "Oh yeah, we always planed to do this coz we get gamers and by the way the Kinect vision is totally uncompromised. We just like choice"
When i think most people would have preferred "We completely mis read the market and our hand has been forced"
That said an inability for a company to say we've got it wrong is hardly a MS specific problem.
Im more concerned on how few X1 consoles will be sold in the next 30 days