The desperation among some people here... I am not knowledgeable about these matters at all but I take MS word over anyone else any day since they have been working on this for years and have far superior technical competence within their company. They have been championing th concept of cloud computing for years so they are obviously on to something.
If this will require more games to always require an internet connection, what matter does it make?? The console community can't seriously be so far behind the PC community when it comes to these matters. If this can give us more impressive games on all manner of consoles, aren't we all happy about it?