I think Microsoft thought these policies were already commonplace in PC gaming, and they're right to a certain extent. But they forgot that consoles aren't PCs.
They looked at data, but that data wasn't applicable to the console they were making.
Same mistake with the infamous TV/Movies focus at the reveal event. Microsoft saw from usage data that most Xbox 360s were simply used for things like Netflix. But they forgot that those people bought their console for games in the first place, and were simply watching Netflix during downtime between game releases (which the drought of releases towards the end of the 360's lifecycle could be to blame).
"Never argue with stupid people. They will drag you down to their level and then beat you with experience."
-Samuel Clemens
