Firmware updates? Really? The reason for the number of updates is simple...the console launched with BETA software, and they are just now getting most of the bugs fixed! I wouldnt say that is an "advantage".
Controllers? I went and played with an XB1 display...I thought they felt SIGNIFICANTLY more flimsy than either the XB360 controller or the PS4's Dualshock 4. The triggers felt loose and rattled a little with significant side to side movement where there should be none. Not having rechargeable batteries standard is also a negative. Also, having to use a separate headphone adaptor? REALLY? So you spend $59.95 on the controller, $20 for the battery pack and charge kit, and another $20 for the headphone adaptor? $100 for a useable controller? NO THANKS!
TV integration? Without full DVR support this is less than worthless. Voice recognition? Let me know when it gets 100% accuracy and doesn't react to commands it hears on TV commercials. Why is this even mentioned at all, since the $399 sku doesn't even HAVE these features?
Most console customers want to play GAMES...and that's the one thing it CAN'T do better than the similarly priced competition, and THAT will be the nail in it's coffin. MS simply spent WAY too much time and effort designing a console around a concept no one was asking for instead of focusing on what made them great last generation!
All of this is reflected in their current sales...but I am sure there are plenty at MS who still look at sales numbers and think "Why?".